Tata Steel jumped 5.04% to Rs 1122.85 after the company reported a consolidated net profit of Rs 6644.15 crore in Q4 FY21 as against net loss of Rs 1481.34 crore in Q4 FY20.  

 
Net sales during the quarter increased 39.4% year-on-year (YoY) to Rs 48950.89 crore. The steel major reported a pre-tax profit of Rs 9356.86 crore in the fourth quarter compared with net loss of Rs 1870.55 crore reported in the same period last year. 

EBITDA surged at Rs 14,290 crore in Q4 FY21 compared with Rs 4,824 crore in Q4 FY20 as Rs 9,652 crore in Q3 FY21. 

EBITDA per ton surged to Rs 18,253 in Q4 FY21 from Rs 6,838 in Q4 FY20 and from Rs 13,021 in Q3 FY21. 

While the company's steel production increased by 1.5% to 8.02 million tonnes, deliveries jumped by 10.9% to 7.83 million tonnes in Q4 FY21 over Q4 FY20. 

The company generated consolidated free cash flows of Rs 8,826 crore in Q4 FY21. 

Net debt decreased by Rs 29,390 crore to Rs 75,389 crore. Net debt to EBITDA improved to 2.44x and net debt to equity improved to 0.98x. 

On a consolidated basis, Tata Steel recorded a net profit of Rs 7490.22 crore in the year ended 31 March 2021 compared with Rs 1556.54 crore in the year ended 31 March 2020. Net sales increased 4.9% to Rs 1,53,308 crore in FY21 over FY20. 

T V Narendran, CEO & managing director, said: "First half of financial year 2021 was a challenging period with the uncertainties and complexities brought on by the COVID-19 pandemic. Indian economy and domestic steel demand has been improving since then with accommodative policies, government spending and relaxation in mobility restrictions. 

Despite a slow start in first quarter, we managed to deliver strong performance in India with broad-based, market-leading volume growth supported by our agile business model. All our segments, especially automotive, have performed extremely well due to our continuous focus on building strong customer relationships, superior distribution network, brands, and new product developments. 

We are also making good progress on our various initiatives to de-risk the business while our digital marketing platforms are helping us reach new markets and be future ready. 

The second wave of COVID-19 in India is a risk and we are working to minimize the impact on our employees and communities while meeting the requirements of our customers. Work on the pellet plant and CRM complex at Kalinganagar is progressing well. We have also restarted our 5mtpa expansion project which should be completed in FY24." 

Koushik Chatterjee, executive director and CFO, said: "The fourth quarter performance has been stand out in terms of both earnings and cash flows, and helped the company to report one of the highest underlying performance for the full year in spite of the pandemic related disruptions during the first half of the financial year. 

With disciplined capital allocation and tight working capital management through the year, Tata Steel's full year free cash flow after capex was around Rs 24,000 crore. Full year de-leveraging was about Rs 28,000 crore. As a result, the year-end net debt was 28% lower compared to the previous year end. The aggressive prepayment of debt has resulted in a sharp improvement of the capital structure metrics with the Net Debt / Equity under 1x and Net Debt / EBITDA at around the long-term target level of 2.44x. 

In the current financial year, we will reduce the debt levels by more than a billion dollars and also enhance the capital allocation to our strategic capex program in India to complete the 5mtpa expansion in Kalinganagar." 

The board of directors recommended a dividend of Rs 25 per fully paid equity share and Rs 6.25 per partly paid equity shares. 

Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum. It is one of the world's most geographically-diversified steel producers, with operations and commercial presence across the world.