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Bond Market News

Tata Steel Reports 37% Jump in Quarterly Profits

May 4, 2022

Indian global company Tata Steel reported a 37% YoY increase in consolidated net profits to INR 98.35bn ($1.3bn) during its quarter ending March 2022. Total revenue from operations rose to INR 693.24bn ($9.1bn), up 39% YoY, driven by higher prices in Europe and higher deliveries in India and Europe. EBITDA rose by 6.2% to INR 151.74bn ($1.98bn) against the previous year. As of March-2022 gross debt stood at INR 755.61bn ($9.9bn) with net repayments of INR 152.32bn ($2bn) in a year. Net debt declined by INR 243.40 ($3.18bn) to INR 510.49bn ($6.68bn). Tata Steel’s net debt-to-EBITDA improved to 0.8x from 2.44x YoY and net debt-to-equity improved to 0.52x from 0.98x last year.  The board recommended a 10:1 stock split, a dividend of INR 51/share ($0.67/share). The steelmaker announced that its acquisition of Neelachal Ispat Nigam Ltd is to be completed in the current quarter and it looks to scale it up rapidly to drive the expansion of its retail business. Mr. Koushik Chatterjee, Executive Director, and CFO said that the increased PAT comes despite the significant surge in international coal prices and the inflationary impact of various commodities. He added that the company would continue to focus on deleveraging while advancing on strategic growth priorities. For the current quarter Tata Steel expects Indian steel demand to remain robust due to the government’s push on infrastructure spending and gradual revival in auto production, while European steel demand is set to sustain above pre-COVID levels.

Tata Steel’s USD 5.45% 2026s were up over 0.1 points to 99.05 yielding 5.64%.

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