“Tata Steel is well-positioned for both inorganic and organic growth opportunities,” Chandrasekaran stated within the firm’s annual report for FY21. “As part of the enterprise deleveraging plan, Tata Steel completed deleveraging of net debt by Rs 29,390 crore in FY 2020-21.”
The firm’s internet debt-to-Ebitda ratio dropped to 2.4 occasions in 2020-21 from 5.8 occasions in 2019-20 and three.2 occasions in 2018-19.
“Despite challenging market conditions, deliveries at Tata increased 2% over FY 2019-20, enabled by a seamless shift to exports in the first half of the year,” the Tata Group chairman stated.
The firm reported its highest consolidated earnings earlier than curiosity, taxes, depreciation and amortisation (Ebitda) of Rs 30,892 crore in FY21, a 71% soar from the earlier 12 months, with an Ebitda margin of round 20%.
“This success has enabled us to continue critical capital expenditure focused on India, including the ongoing pellet plant and cold roll mill commissioning at Tata Steel Kalinganagar,” Chandrasekaran stated.
These investments will assist increase margins by boosting value-added merchandise into the prevailing combine, he stated.
The firm has reclassified Tata Steel South East Asia operations to ‘Continuing operations’ from ‘Held for sale’ after the unit reported a 50% improve in its Ebitda to Rs 549 crore. This was enabled by increased costs and a concentrate on uncooked materials price discount, Chandrasekaran stated.
Following the termination of its discussions with Swedish firm SSAB on Tata Steel Netherlands, the corporate is concentrated on efficiency and money flows within the speedy time period. “The process to separate Tata Steel Netherlands and Tata Steel UK are currently underway,” Chandrasekaran stated. “Tata Steel remains committed to arriving at a strategic and sustainable resolution for its European portfolio.”
In India, the corporate ventured into the metal recycling enterprise, a step in the direction of a decrease footprint manufacturing course of throughout emissions, resource-use, and power consumption. “During the year, the company sent out its first raw material consignment of ferrous scrap for trials, from its scrap processing plant (0.5 MnTPA capacity) at Rohtak, Haryana,” Chandrasekaran stated.
The firm can also be exploring new manufacturing processes resembling scrap-based electrical arc furnaces and gas-based direct diminished iron; investing forward on promising inexperienced applied sciences like carbon seize use and storage (CCUS); assessing the long-term provide of key inputs resembling clear electrical energy and biomass for hydrogen manufacturing; and securing the provision of carbon offsets.
As of May 2021, Tata Steel India has cumulatively equipped 55,000 tonnes of liquid medical oxygen because the nation was preventing the scarcity of the life-saving gasoline. “We also helped debottleneck oxygen transportation in the country by importing 40 cryogenic tanks, and more tanks are in the pipeline,” Chandrasekaran stated.