Tata Steel Optimistic About Steel Industry Prospects

SEATTLE (Scrap Monster): Tata Steel shared optimistic view of steel industry’s future prospects. This is based on the series of strategic investments made by the company in recent years, aimed at strengthening its infrastructure and operational capabilities. Also, the company announced its commitment to be a leader in the transition to a greener economy.

In its annual report, N. Chandrasekharan, Chairman-Tata Steel Group said that the key moves by the company over the last few years have delivered structural and financial strength to capture the future opportunities. The company has ensured its resilience to challenging environments. The global steel industry too is entering a phase of better spreads, recovering from the pandemic crisis, he added.

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Tata Steel posted record consolidated EBITDA of INR 30,892 crore, significantly higher by 71% over the previous year. Higher steel prices played a key role in the company’s performance. The company reported EBITDA per tonne of INR 10,838 and EBITDA margin of approximately 20%. Tata Steel’s cash flow totalled INR 23,748 crore, which is the highest in the company’s history.

The India, Netherlands and UK businesses launched steel recycling business during the year. The India operations turned cash positive during Q1 FY 2021. Also, the company shelved its plans to sell the Southeast Asian business.