Multibagger Tata Steel Shares Announce 510% Dividend And 10:1 Stock Split

Updated: Wednesday, May 4, 2022, 21:49 [IST]

Tata Steel as intimated was to meet for its audited results, dividend and stock split consideration on May 3, 2022. Accordingly the company has informed that the company's total revenue from operations in the March ended quarter of Fy22 increased to Rs. 69323.5 crore. Also, the company's net profit registered an increase from Rs. 7161.91 crore in the corresponding period a year ago to Rs. 9835.12 crore.

Highlights of Tata Steel Q4Fy22 results as per the filing:

Tata Steel reports highest ever consolidated EBITDA at Rs 63,830 crores;
Net debt to EBITDA improves to 0.8x

Highlights:
▪ Highest ever consolidated EBITDA of Rs 63,830 crores with an EBITDA per ton of Rs 21,626. Profit after tax
stood at Rs 41,749 crores
▪ Consolidated Free Cash Flow was Rs. 27,185 crores despite an increase in working capital of Rs. 9,618 crores,
capex of Rs. 10,522 crores and taxes of Rs. 11,902 crores
▪ Gross debt stood at Rs.75,561 crores with net repayments of Rs.15,232 crores. Net debt declined toRs.51,049 crores. Net debt to EBITDA improved to 0.80x; Net debt to equity improved to 0.52x.
▪ The 6 MTPA Pellet plant at Kalinganagar will be commissioned in 3QFY23 followed by the Cold Roll Mill
complex and the 5 MTPA expansion.

Dividend announcement:

In the filing the company announced that the company "Recommended a dividend of Rs. 51 per fully paid-up Ordinary Share of ₹10/- each (510%) to the shareholders of the Company for the Financial Year ended March 31, 2022. Further, in respect of the outstanding partly paid-up Ordinary Shares of the Company on which call money remains unpaid as on the date of book closure for the dividend payment, the dividend will be paid in proportion to the amount paid-up on such shares, i.e., ₹12.75 per partly paid-up Ordinary Share of ₹10/- each (paid-up ₹2.504 per share) (510%).

The dividend recommended by the Board of Directors of the Company is subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company scheduled to be held on Tuesday, June 28, 2022. The dividend, if approved by the shareholders at the AGM, will be paid, subject to deduction of tax at source, on and from June 30, 2022.

Tata Steel Stock Split:

The Board considered the proposal for sub-division of 1 equity share of the Company having
face value of ₹10/- each into 10 (Ten) equity shares having face value of ₹1/- each, subject
to regulatory/statutory approvals as may be required and the approval of the shareholders of
the Company. So subject to the approval of the company's shareholders, the company's shares will be split in 10:1 ratio. So, the existing shareholders who hold the company's shares as on the record date of the split shall be entitled to 10 times their holding in the scrip and also the stock price of the company shall adjusts as per the split on the split or ex-date.

Disclaimer: The stock is stated for its quarterly results announcement and other recommended corporate actions.