TATA STEEL
Tata Steel was established in India as Asia’s first integrated private steel company in 1907. It operates in 26 countries and has a commercial presence in over 50 countries. It’s annual crude steel capacity across Indian operations is nearly 13 million ton per annum. It accounts for the employment of over 660800 people worldwide.
Tata Steel possess and operates captive mines that helps them maintain cost-competitiveness and production efficiencies through an uninterrupted supply of raw material. This makes it one of the very few steel operators that are fully integrated – from mining to the manufacturing and marketing of finished products. Tata Steel is the only steel company to have two of its facilities, Tata Steel Kalinganagar, India and Tata Steel IJmuiden, the Netherlands, recognised as Industry 4.0 Lighthouses by the World Economic Forum. The company has touched Rs. 1 trillion in market capitalisation in April this year. It is the 4th company of Tata Group of companies to have hit the 1 trillion mark.
The shareholding pattern of Tata Steel is as follows:
Promoters holding at 34.41%, Foreign institutional Investors at 18.56%, Domestic institutional investor at 25.16%, Govt at 0.25% and Public holding at 21.62%.
Along with the quarter 4 results, the company has announced a dividend of Rs.25 per equity share. This quarter Tata Steel has seen an increase in its operating profit margin, which stands at 24.01% compared to 15.67% in Q3 of this year. The Profit after taxes stands at Rs.7161.91 Cr which is very high compared to Q4 of FY 2019-20 which was a negative Rs.1615.35 Cr.
It has seen significant growth in Return on Equity over the year. It now stands at 9.24%, which was -6.93% in Q1 of FY2020-21.
Overall the company has shown better than expected results and recovered very well from the previous year lockdowns.
