Tata Steel Announces FY2023 Consolidated Revenues of Rs 2,43,353 Crores and Dividend of Rs 3.60 per Share

Tata Steel reports FY2023 revenues of Rs 2,43,353 crores and a dividend of Rs 3.60 per share, focusing on sustainability with a net zero target by 2045.

Jamshedpur – Tata Steel has announced its financial results for the quarter and year ended March 31, 2023. The company reported consolidated revenues of Rs 2,43,353 crores for FY2023, which were broadly similar on a year-on-year basis despite the volatile operating environment across geographies.

The consolidated profit after tax stood at Rs 8,075 crores.

During the quarter ended March 2023, the company’s consolidated revenues were Rs 62,962 crores, and EBITDA was at Rs 7,225 crores, with an EBITDA margin of approximately 11%.

The company’s profitability improved primarily due to its performance in India.

Tata Steel’s India crude steel production for FY2023 grew to around 19.9 million tons, accounting for 65% of the company’s overall volumes.

Domestic deliveries grew by 11% year-on-year, driving product mix improvement. The quarter saw strong momentum with deliveries growing by 9% quarter-on-quarter to 5.15 million tons.

The Board of Directors of Tata Steel recommended a dividend of Rs. 3.60 per fully paid-up equity share of face value of Re 1/- each.

Tata Steel’s CEO and MD, T V Narendran, stated, “We have multiple projects ongoing at various locations in India as we work towards 40 MTPA by 2030. The phased commissioning of our expansion at Kalinganagar continues with FHCR coils now being produced at the CRM complex.”

Neelachal Ispat Nigam Limited, acquired by Tata Steel, has steadily ramped up during the last two quarters and is presently operating with a run rate of around 1 million tons (crude steel plus pig iron) on an annualized basis.

Sustainability is at the core of Tata Steel’s strategy, and the company has committed to achieving net zero by 2045.

The company’s route and pace of decarbonization across geographies will be calibrated for each location based on the local regulatory framework, government support, and willingness of customers to pay for higher-cost green steel.

Tata Steel has been recognized by worldsteel as a Sustainability champion for the sixth time in a row and by the World Economic Forum as a Global Diversity, Equity & Inclusion Lighthouse.

In Europe, revenues were £9,293 million, and EBITDA was £477 million, translating to an EBITDA per ton of £58.

Tata Steel is focused on cost optimization, operational improvements, and working capital management to maximize cash flows and aims to resume its deleveraging journey in FY2024. The Board has recommended a dividend of Rs 3.60 per share.