Tata Steel expects higher debt in Q2FY23 due to NINL acquisition

Tata Steel Managing Director TV Narendran.

Tata Steel expects higher debt for the ongoing quarter ended September 2022 as the acquisition of Neelachal Ispat Nigam Limited (NINL) gets reflected in the financials of the company, said Tata Steel’s Managing Director TV Narendran in an interview with Moneycontrol.

The company’s net debt has gone higher from Rs 54,000 crore to Rs 66,000 crore, as it paid for the NINL acquisition in July. But, the company expects to bring it down to Rs 45,000 crore for the financial year 2023. Improvement in steel sales combined with unlocking of working capital due to lower coking coal prices is expected to bring the company’s net debt, said the managing director.

For the quarter ended June, the company’s net debt rose by Rs 3455 crore to Rs 54,504 crore from Rs 51,049 crore witnessed in the March quarter due to higher working capital requirements.