Tata Steel Delivered Strong Performance in FY 2020-21
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Tata Steel Delivered Strong Performance in FY 2020-21

Tata Steel in Annual report for 2020-21 said that “The COVID-19 outbreak towards the end of FY 2019-20 brought economic activities to a near-standstill

Tata Steel in Annual report for 2020-21 said that “The COVID-19 outbreak towards the end of FY 2019-20 brought economic activities to a near-standstill in the first half of FY 2020-21. Restrictions imposed on movement of people and business activities to contain the spread resulted in the contraction of global GOP in 2020. Since then, the global economy has been recovering, driven by fiscal stimulus and accommodative monetary policies, followed by good progress in vaccination. Despite the challenges, uncertainties and complexities due to the pandemic, Tata Steel Group delivered a strong performance in FY 2020-21. Consolidated steel production was at 28.54 million tonne while total deliveries stood at 28.50 million tonne, marginally below that of the previous year. Our consolidated revenues increased by 5% to INR 156,294 crores driven by strong underlying performance of our India operations and improved performance of our European operations.”

Tata Steel said “In India, despite a slow start in the first quarter of FY 2020-21, we delivered a strong performance for the year. Our business decisions during the year pivoted around cash flows and internal fund generations. Hence balancing of sales between domestic and export markets supported by an agile supply Cham was crucial for our success in the first half, while the second half witnessed a strong economic recovery. Most of the steel consuming sectors rebounded with support from government spending, pent-up demand and easing liquidity. Our India operations, which include Tata Steel BSL and Tata Steel Long Products, generated revenues of INR 91,037 crore, up 11% YoY. The EBITDA margin of the India business was around 31.4% and that of Tata Steel (standalone) was 33.8% which demonstrates the strength of the business. Overall, we achieved a consolidated EBITDA of INR 30,892 crore driven by multiple factors including improved market environment, a better product mix, continued cost takeout programmes and benefits derived through operational and financial efficiency. In FY 2020-21, consolidated profit after tax for Tata Steel Group stood at INR 8,190 crore, significantly above 1,172 crore reported a year ago. The increase was mainly due to a significant improvement m the underlying business performance resulting in a robust level of earnings for the year.”

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