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Published: May 30, 2024
Updated: May 30, 2024

Tata Steel Declares ₹3.60 Dividend Per Share: Key Dates and Financial Highlights Dividend Announcement and Approval

On Wednesday, Tata Steel's board announced a final dividend of ₹3.60 per share for the financial year 2023-24. This dividend, representing 360% of the face value of ₹1 per share, is contingent upon shareholder approval at the upcoming Annual General Meeting (AGM) scheduled for July 15, 2024. If approved, the dividend will be disbursed starting from July 19, 2024, after the deduction of applicable taxes.

Record Date and Shareholder Eligibility

The company has designated July 21, 2024, as the record date for determining shareholders eligible to receive the dividend. This complies with Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Q4 Financial Performance

Tata Steel reported a significant drop in its consolidated net profit for the quarter ending March 2024. The net profit stood at ₹611 crore, a 64% decline from ₹1,705 crore in the corresponding quarter of the previous year. This figure also fell short of market expectations, which had estimated a profit of ₹991 crore. Additionally, the company's revenue from operations for the quarter decreased by 7% year-on-year to ₹58,687 crore.

Full-Year Financial Highlights

For the full fiscal year 2023-24, Tata Steel's consolidated revenues were approximately $27.7 billion, driven by higher volumes in India. The company achieved a consolidated EBITDA of ₹23,402 crore, reflecting an EBITDA margin of around 10%. In India, the EBITDA increased by 10% year-on-year to ₹31,057 crore, with a margin improvement of around 200 basis points to 22%. The profit after tax, excluding exceptional items, amounted to ₹17,514 crore.

Capital Expenditure and Cash Flow

Tata Steel reported consolidated cash flow from operations of approximately ₹7,400 crore for the quarter and ₹20,300 crore for the full year. The company’s capital expenditure was ₹4,850 crore for the quarter and ₹18,207 crore for the full year, marking a 29% year-on-year increase. The group's liquidity remains robust at ₹31,767 crore.

Investment in Foreign Subsidiary

The board has also approved a proposal to inject up to $2.11 billion (₹17,407.50 crore) into its wholly-owned foreign subsidiary, T Steel Holdings Pte Ltd, by subscribing to equity shares in multiple tranches during FY25.

Tata Steel’s announcement of a ₹3.60 per share dividend comes amidst a challenging quarter with a notable drop in net profit. Despite this, the company’s robust annual performance and strategic investments reflect a commitment to growth and shareholder value. Shareholders should mark their calendars for the AGM on July 15, 2024, to approve the dividend and ensure they meet the record date on July 21, 2024, to receive their dividends.