Tata Group Stock Below Rs 111 Declares 360% Dividend, Profit Declines

Tata Group stock, Tata Steel Ltd on May 2 declared its consolidated year-on-year net profit at Rs 1704.86 crore, down 82.53%. It is worth noting that the company declared its net profit in the year ago period at Rs 9835 crore. The board recommended a dividend of Rs 3.60 per Ordinary (Equity) Share of Re 1/- each (360%) to the shareholders of the Company for the FY2022-23.

Tata Steel Q4 revenue from operations declared at Rs 62,962 crore, down 9.2 percent from Rs 69,323 crore in the year-ago period. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 52% YoY to Rs 7,225 crore.

Last trading price of Tata Steel is Rs 110.30 per share with intraday jump of 2.22% on BSE. The stock's 52-week high price is Rs 133.00 per share and 52-week low price is Rs 82.71 per share, respectively. The market capitalisation is Rs 1,34,785.58 crore.

The stock gave 9% return in last 6-months, declined 14% in last 1-year, gave 6% return in last 2-years, and 269% return in last 3-years. It jumped 91% in last 5-years.

"Our financial metrices continue to be within our medium-term targets, with net debt to EBITDA at 2.07x and net debt to equity at 0.61x. We remain focused on cost optimisation, operational improvements and working capital management to maximise cashflows and will aim to resume our deleveraging journey in FY2024," said Koushik Chatterjee, Executive Director and CFO, Tata Steel.

Tata Steel's India business achieved highest ever annual crude steel production of 19.88 million tons during FY23 and highest ever deliveries of 18.87 million tons.

Meanwhile, revenues from Europe business reported at £9,293 million and EBITDA declared at £477 million, translating to an EBITDA per ton of £58. "Product mix has been affected due to ongoing upgradation of Cold Mill in Ijmuiden (CM21). The relining of one of the blast furnaces at Ijmuiden has commenced in early April," Tata Steel said.

Disclaimer: The company declared its quarterly results and recommended dividend. Greynium Information Technologies and the author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.