Tata Steel prioritises over $2 bn gross debt reduction in FY22
Steel

Tata Steel prioritises over $2 bn gross debt reduction in FY22

The estimated average expenditure of Tata Steel in India, over the next five years is around Rs 10,000-12,000 crore per annum, and that leaves out potential acquisitions. Tata Steel is poised for the upcoming growth stage even as it proceeds to stay the course on deleveraging.

The firm is likely to decrease gross debt by over $2 billion in FY22.

Koushik Chatterjee, Executive Director and Chief Financial Officer, Tata Steel, told the media that to position the next stage of the growth, the company would continue to deleverage and make its balance sheet even more effective.

The presentation of the investors informed that amongst the FY22 deleveraging priorities, over $2 billion gross debt reduction and prioritising offshore debt pre-payments. He said the firm had made material repayments in the Singapore and European balance sheets even in the June quarter.

Chatterjee further added that in FY21, Tata Steel decreased net debt by $4 billion. In the next 2-3 years, the priority would be nearly $1 billion of repayment every year before the allocation surpluses towards growth. If there are acquisition possibilities, they will revisit the level.

He also pointed out that despite the Bhushan Steel and Usha Martin acquisitions of over Rs 40,000 crore in the interim period, the company's net debt has been restored to FY18 level of Rs 75,000 crore.

The firm was able to record gross debt/EBITDA of 2.9x and net debt/EBITDA around 2.5x. However, it has established an aim of net debt/EBITDA at 2x.

Image Source


Also read: Crude steel output of Tata Steel surges over 43%, sales by 35%

The estimated average expenditure of Tata Steel in India, over the next five years is around Rs 10,000-12,000 crore per annum, and that leaves out potential acquisitions. Tata Steel is poised for the upcoming growth stage even as it proceeds to stay the course on deleveraging. The firm is likely to decrease gross debt by over $2 billion in FY22. Koushik Chatterjee, Executive Director and Chief Financial Officer, Tata Steel, told the media that to position the next stage of the growth, the company would continue to deleverage and make its balance sheet even more effective. The presentation of the investors informed that amongst the FY22 deleveraging priorities, over $2 billion gross debt reduction and prioritising offshore debt pre-payments. He said the firm had made material repayments in the Singapore and European balance sheets even in the June quarter. Chatterjee further added that in FY21, Tata Steel decreased net debt by $4 billion. In the next 2-3 years, the priority would be nearly $1 billion of repayment every year before the allocation surpluses towards growth. If there are acquisition possibilities, they will revisit the level. He also pointed out that despite the Bhushan Steel and Usha Martin acquisitions of over Rs 40,000 crore in the interim period, the company's net debt has been restored to FY18 level of Rs 75,000 crore. The firm was able to record gross debt/EBITDA of 2.9x and net debt/EBITDA around 2.5x. However, it has established an aim of net debt/EBITDA at 2x. Image Source Also read: Crude steel output of Tata Steel surges over 43%, sales by 35%

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?