Tata Steel Consolidated Net Debt Tripled in FY19

SEATTLE (Scrap Monster): Tata Steel’s standalone net debt for the full fiscal year ended 31^st March, 2019 more than tripled over the prior year, according to the annual report published by the company.

The FY 19 net debt surged higher to touch INR 28,471 crore, as compared with INR 8,769 crore a year before, primarily on account of decrease in current investments along with cash and bank balances. The cash and cash equivalents have witnessed a decline of INR 4,044 crores during 2018-’19.

According to the report, the net debt on a consolidated level reported notable jump by almost 37% from INR 69,215 crores in the previous fiscal to INR 94,879 crore. The company’s standalone businesses reported higher gross debt and drop in investments. The gross debt leapt nearly 29% year-on-year to surpass the psychological level of INR 1 lakh crore. It totaled INR 1, 18,860 crores, as compared with INR 92, 147 crores in previous fiscal.

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It must be noted that Tata Steel had made two strategic acquisitions- Bhushan Steel and Usha Martin. The company recorded the highest levels of revenue and EBITDA in is entire history, on a consolidated basis. For the time time in over a decade, the company generated positive free cash flows, which stood at INR 8,839 crores during the year.

Tata Steel reported strong liquidity position of INR 15,284 crores, as on March 31^st, 2019, but significantly lower by nearly 50% over the previous fiscal. On a consolidated basis, Tata Steel spent INR 9,091 crores in capex.