Established in India as Asia’s first integrated private steel company in 1907, Tata Steel today is one of the most profitable and lowest cost producers of steel in the world, with captive iron ore mines and collieries located near our manufacturing facilities in Jamshedpur and Kalinganagar. The company’s comprehensive portfolio of products and brands caters to multiple industries and segments.
The first half of 2020-21 witnessed disruptions caused by the pandemic. However, the domestic steel demand improved in the second half with favourable policies, increased government spending and relaxed movement norms. The company managed to deliver broad-based, market-leading volume growth supported by its agile business model. Tata Steel Group delivered a strong performance in 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.
The company's consolidated revenues increased by 5 per cent to Rs. 1.56 trillion, driven by the strong underlying performance of the company’s India operations and improved performance of their European operations.
“Tata Steel over the past few years has invested in building its digital infrastructure, which helped tide over not only the initial phase of the pandemic but continues to provide us with the critical enabler for business analytics and automation. We will continue to invest significantly in digital across all business processes in the company.
As a company, we are also focussing significantly on technology, and we have identified six technology leadership areas, along with the creation of enabling infrastructure to tap into the global technology and innovation ecosystem. We will continue to progress on the technology roadmap to create innovative products, invest in new processes and rework our business model in the future,” TV Narendran, CEO and Managing Director, Tata Steel, as quoted in the company’s Integrated Report & Annual Accounts 2020-21.
Overall, the company achieved a consolidated EBITDA of Rs. 308.92 billion, driven by multiple factors including an improved market environment, a better product mix, continued cost takeout programmes and benefits derived through operational and financial efficiency. With disciplined capital allocation and tight working capital management, Tata Steel’s full-year free cash flow after CAPEX was Rs. 237.48 billion. In FY 2020-21, consolidated PAT for Tata Steel Group stood at Rs. 81.90 billion, significantly above the Rs. 11.72 billion, reported a year ago.
