Tata Steel reports consolidated financial results for the quarter and full year ended March31, 2020

Mumbai, June29, 2020

Key Highlights:▪Health and Safety: Lost Time injury frequency rate per mn man hours worked of Tata Steel group has reduced by 27% over last 10 years to 0.69

FY20 Consolidated steel production increased by 5%YoY to 28.46 mn tons and deliveries stood at 26.68 mn tons; India1(which includes Tata Steel Standalone, Tata Steel BSL and Tata Steel Long products) steel production increased by 8%YoY to 18.20 mn tons while deliveries grew 4%YoY to 16.97 mn tons and contributed ~64% of consolidated deliveries

4QFY20 Consolidated steel production increased by 5%QoQ to 7.37 mn tons and deliveries stood at 6.50 mn tons; India1steel production increased by 6%QoQ to 4.73 mn tons while deliveries stood at 4.03 mn tons

Consolidated revenues stood at Rs.139,817 crores for FY20 and Rs.33,770crores for 4QFY20; India revenues stood at Rs.82,125 crores for FY20 and Rs.19,493 crores for 4QFY20; Standalonerevenues stood at Rs.60,436crores for FY20 and Rs.14,211crores for 4QFY20

Consolidated EBITDA was Rs.17,735 crores for FY20, grew 28%QoQ to Rs.4,669 crores in 4QFY20. India1EBITDA was Rs.17,650 crores for FY20, grew 11%QoQ to Rs.4,568 crores in 4QFY20. StandaloneEBITDA was Rs.15,096 crores for FY20 and Rs.3,661crores in 4QFY20

FY20 Consolidated PAT from continued operationsstood at Rs.2,337crores; India1profit after tax was Rs.5,611 crores

Our liquidity remains robust at Rs.17,745crores includingRs.11,549 crores in cash & cash equivalents and the balance in undrawn credit line

Gross debt at end of Mar’20 was Rs.1,16,328 croreswhile Net debt was Rs.1,04,779 crores.

The Board of Directors recommended a dividend of Rs. 10 per fully paid equity share and Rs. 2.504per partly paid equity share

Management Comments:

Mr. T V Narendran, CEO & Managing Director: “FY20 has been a challenging year.The Indian economy sloweddown in the first half with key steel consuming sectors like automotive contracting sharply. While the economy began recovering in the second half, the outbreak of Covid-19 in end March led to unprecedented disruption and heightened economic uncertainty. We have recalibrated our operations in line with the evolving business environment and are focused on conserving cash while actively de-risking the business

While deliveries in India were marred by the nationwide lockdown in late March 2020, margins improved on the back of stronger performance in the early part of the quarter. Both our acquisitions, Tata Steel BSL and Tata Steel Long Products continue to deliver improvements in operating KPIs which has translated into better profitability. Tata Steel Europe showed a turnaround in performance with positive EBITDA for the quarter. While there will be a sharp drop in volumes in 1QFY21, we are seeing early signs of recovery and remain poised to leverage our position on normalization of business conditions.”

Mr. Koushik Chatterjee, Executive Director and CFO:“Given the heightened uncertainty due to the Covid-19 pandemic, we are focused on conserving cash and ensuring adequate liquidity to face potential disruptions in the operating environment. We have pivoted business decisions on cashflows and successfully driven cash neutrality in our operations by reducing spend, managing working capital and curtailing capital expenditure. We also raised additional funds of Rs.4,900 crores to build a contingency buffer. Our liquidity at the end of the year remained robust at Rs.17,745 crores including cash and cash equivalents of Rs.11,549 crores.In Q4FY20, our India operations reported a 11%QoQ improvement in EBITDA to Rs.4,568 crores for the quarter, which is an EBIDTA margin of 23.4%. Tata Steel Standalone EBITDA margin was higher at 25.8%. Tata Steel BSL EBITDA improved to Rs.775 crores while Tata Steel LP increased to Rs.132 crores. Tata Steel Europe performance reported an EBITDA of Rs.65 crores compared to a loss of Rs.956 crores in 3QFY19. All this led to a 28%QoQ improvement in our consolidated EBITDA to Rs.4,669 crores.”