Tata Steel prioritises over $2 bn gross debt reduction in FY22
Steel

Tata Steel prioritises over $2 bn gross debt reduction in FY22

The estimated average expenditure of Tata Steel in India, over the next five years is around Rs 10,000-12,000 crore per annum, and that leaves out potential acquisitions. Tata Steel is poised for the upcoming growth stage even as it proceeds to stay the course on deleveraging.

The firm is likely to decrease gross debt by over $2 billion in FY22.

Koushik Chatterjee, Executive Director and Chief Financial Officer, Tata Steel, told the media that to position the next stage of the growth, the company would continue to deleverage and make its balance sheet even more effective.

The presentation of the investors informed that amongst the FY22 deleveraging priorities, over $2 billion gross debt reduction and prioritising offshore debt pre-payments. He said the firm had made material repayments in the Singapore and European balance sheets even in the June quarter.

Chatterjee further added that in FY21, Tata Steel decreased net debt by $4 billion. In the next 2-3 years, the priority would be nearly $1 billion of repayment every year before the allocation surpluses towards growth. If there are acquisition possibilities, they will revisit the level.

He also pointed out that despite the Bhushan Steel and Usha Martin acquisitions of over Rs 40,000 crore in the interim period, the company's net debt has been restored to FY18 level of Rs 75,000 crore.

The firm was able to record gross debt/EBITDA of 2.9x and net debt/EBITDA around 2.5x. However, it has established an aim of net debt/EBITDA at 2x.

Image Source


Also read: Crude steel output of Tata Steel surges over 43%, sales by 35%

The estimated average expenditure of Tata Steel in India, over the next five years is around Rs 10,000-12,000 crore per annum, and that leaves out potential acquisitions. Tata Steel is poised for the upcoming growth stage even as it proceeds to stay the course on deleveraging. The firm is likely to decrease gross debt by over $2 billion in FY22. Koushik Chatterjee, Executive Director and Chief Financial Officer, Tata Steel, told the media that to position the next stage of the growth, the company would continue to deleverage and make its balance sheet even more effective. The presentation of the investors informed that amongst the FY22 deleveraging priorities, over $2 billion gross debt reduction and prioritising offshore debt pre-payments. He said the firm had made material repayments in the Singapore and European balance sheets even in the June quarter. Chatterjee further added that in FY21, Tata Steel decreased net debt by $4 billion. In the next 2-3 years, the priority would be nearly $1 billion of repayment every year before the allocation surpluses towards growth. If there are acquisition possibilities, they will revisit the level. He also pointed out that despite the Bhushan Steel and Usha Martin acquisitions of over Rs 40,000 crore in the interim period, the company's net debt has been restored to FY18 level of Rs 75,000 crore. The firm was able to record gross debt/EBITDA of 2.9x and net debt/EBITDA around 2.5x. However, it has established an aim of net debt/EBITDA at 2x. Image Source Also read: Crude steel output of Tata Steel surges over 43%, sales by 35%

Next Story
Resources

Madhya Pradesh Champions Inclusive Tourism at Heritage Sites

On the occasion of World Heritage Day, Madhya Pradesh is taking a significant step toward inclusive tourism by making its historical sites accessible to all — especially persons with disabilities. The state is rolling out its ‘Accessibility Infrastructure and Development’ project at Maheshwar, Mandu, Dhar, and Orchha, aiming to create a more welcoming experience at these iconic cultural destinations.The initiative, under the leadership of Chief Minister Dr Mohan Yadav and Tourism Minister Shri Dharmendra Bhav Singh Lodhi, includes infrastructure upgrades such as ramps, Braille signage, w..

Next Story
Resources

Runwal Realty Onboards Sonam Kapoor as Brand Ambassador

Real estate major Runwal has unveiled a refreshed identity as Runwal Realty, signalling a renewed commitment to crafting spaces that stand the test of time. With this refresh, the brand unveils its new philosophy: “Building for Generations to Come” and welcomes Bollywood star and global fashion icon Sonam Kapoor as its brand ambassador. This evolved identity reflects Runwal Realty’s commitment to creating not just homes, but heirlooms—crafted through visionary design, meticulous planning, global design expertise and an unwavering focus on quality. With the customer at its core, each de..

Next Story
Infrastructure Urban

Emerging Trends in Infrastructure and Transport 2025: KPMG

KPMG’s latest report, The Great Reset: Emerging Trends in Infrastructure and Transport 2025 edition, sheds light on the profound changes transforming the global infrastructure landscape. As industries adapt to the challenges posed by climate change, economic pressures, and technological advancements, the report identifies key trends and provides actionable insights for leaders in infrastructure and transport sectors. “In today’s interconnected world, the lack of standardized supply chain practices is not just an operational challenge—it’s an environmental and economic one. We’..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?