Tata Steel Q4 result | Net profit rises 37% YoY to Rs 9,835 crore; firm announces 10:1 stock split

Tata Steel Ltd on May 3 reported a consolidated net profit of Rs 9,835.12 crore for the quarter ended March 2022, registered a 37.3 percent growth over Rs 7,162 crore profit logged in the year-ago quarter, thereby beating analysts' estimates. The firm also announced a stock split at 10:1.

India’s largest steelmaker reported 39 percent year-on-year (YoY) growth in consolidated revenue at Rs 69,323.50 crore during the fourth quarter, with Tata Steel India showing a 34 percent growth YoY at Rs 36,681 crore and Tata Steel Europe clocking a massive 53 percent growth at Rs 26,389 crore in the same period.

A Bloomberg consensus estimate of 12 brokers had said the net profit would come in at Rs 9,462 crore while revenue was pegged at Rs 66,195.50 crore.

"Tata Steel has again demonstrated its ability to deliver stellar results despite heightened complexity in the face of COVID as well as geopolitical tensions," T V Narendran, Chief Executive Officer & Managing Director said.

Narendran further said Indian business showed broad-based growth. European operations delivered robust performance as the transformation programme undertaken helped leverage the strong business environment.

At the operating level, its earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 6 percent to Rs 15,174 crore with EBITDA per tonne rising 3.7 percent to Rs 18,937 compared to the corresponding period last fiscal, said Tata Steel in its BSE filing.

The company further said the production at 7.62 million tonnes for the March quarter declined 5 percent compared to the year-ago period, but deliveries increased by 2.3 percent to 8.01 million tonnes in the same period.

In the full year, consolidated profit surged 410 percent to Rs 41,749 crore and revenue grew by 56 percent to Rs 2.44 lakh crore compared to the previous year.

"We have closed the financial year with consistent and record operating and financial performance for the year, surpassing the previous best in FY21, with EBIDTA being 2x and Profit after Tax being >5x the previous year. This is despite the significant surge in international coal prices and the inflationary impact of various commodities," Koushik Chatterjee, Executive Director and Chief Financial Officer said.

Tata Steel India in FY22 clocked a 53 percent growth in revenue at Rs 1.29 lakh crore and Tata Steel Europe registered a 61 percent increase at Rs 90,023 crore compared to the previous year.

Tata Steel clocked the highest ever consolidated EBITDA of Rs 63,830 crore with an EBITDA per ton of Rs 21,626 for the full year, which doubled from the previous year.

The company said gross debt stood at Rs 75,561 crore with net repayments of Rs 15,232 crore. "Net debt declined to Rs 51,049 crore, and net debt to EBITDA improved to 0.80x."

Its 6 million tonnes per annum (MTPA) pellet plant at Kalinganagar will be commissioned in Q3FY23 followed by the cold roll mill complex and the 5 MTPA expansion.

Tata Steel has announced a dividend of Rs 51 per share and Rs 12.75 per partly paid equity share. "Splitting of the shares to Re 1 per share face value in a 10:1 split is also recommended," Koushik Chatterjee said.