Tata Steel’s net debt has more than tripled in FY19

Release time：Jun 25, 2019 From：admin

Due to current investment declines and cash and bank balances, Tata Steel's full-year independent net debt as of March 2019 has more than tripled from Rs 8,769 crore a year ago to Rs 28,471 crore. According to FY19's 112th annual report, the company's cash and cash equivalents decreased by Rs. 4,044 crore in 2018-2019, compared with a net increase of Rs. 3,684 crore last year.

For the full year ended March 31, 2018, independent net liabilities increased by 0.42 times compared with equity, while cash and bank balances and other liquidity investments declined significantly.

The higher total debt and current investment, the decrease in cash and bank balances, is mainly Tata Steel's independent business, pushing the net debt up to the level of consolidation. At the level of consolidation, net debt increased by Rs. 25,664 crore, or nearly 37%, to Rs. 94,879 crore, compared to Rs. 69,215 crore last year. The total debt of more than 100,000 rupees increased by Rs. 8,669 crore from the previous year.

According to the annual report, the increase in total debt was mainly due to the gain of borrowings (net of repayments) of Rs 8,340 crore and the impact of exchanges on conversions of Rs. 345 crore. The increase in borrowing was mainly due to the independence of TBS Steel (Tata Steel Bhushan) and Tata Steel, partially offsetting the reduction in Tata Steel Europe and Singapore entities.

The company’s net debt and equity rose to 1.42 times at the combined level, compared to 1.37 times last year.

The company said that as of March 31, 2019, its liquidity situation remained strong, reaching Rs. 15,284 crore. However, this figure has fallen by more than half compared to Rs. 36,320 crore in March 2018.

During the year, Tata Steel’s capital expenditure at the level of consolidation was Rs. 9,091 crore, compared to 7,479,000 for India, Europe and Canada for the year ended March 31, 2018. Thousand rupees. Last year's spending also included Southeast Asia's Asian operations, and Tata Steel announced its withdrawal in January this year.

In a note to shareholders, the management stated that in the first half of FY19, due to the acquisition of Bhushan Steel (Tata Steel Company BSL), the total debt was 1,186,680 rupees, which reached its peak, but it has taken measures to leverage The assets and liabilities of the Tata Steel Group were expressed to Rs 17,864 crore, reducing the total debt.

Despite some pressure on the domestic debt market, we successfully raised Rs. 4,315 crore through a successful 15 year non-convertible bond to extend the debt maturity. The company said that we also provided 12 years of take-away financing for Tata Steel BSL for Rs. 15,500 crore.