Tata Steel To Reduce Their Debt By $1 Billion Annually Till Next Year

The CEO and MD of Tata Steel TV Narendran stated that from the point of view of steel consumption, they expect the consumption to return to its positive levels by next year. They could not achieve the target of reducing their debt by $1 billion in the previous year as many of their funds were going towards their working capital.

Also, add the fact also comes into play that the company acquired another company Neelachal for about Rs 12,000, combining with Wit and acquiring some assets on the Ferro Alloy side. This was the major reason the company’s debt increased in that consecutive year. But the company is working towards their target of reducing its debt by $1 billion by next year.

Thus, the company expects to be on track till next by working towards its $1 billion debt. The consolidated profit of Tata Steel fell 82% from a year ago in the period of January-March. For the quarter that ended in March, an EBITDA was reported by the company of Rs 6,949.

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As business in India is going on very strong, business in Europe continues to be challenging. The CEO states that Europe surely continues to be a challenge in business, but things are eventually getting better. But still, the company can be expected to face another challenging quarter, and they are preparing for that. Hopefully, things will also get better from there.

He also stated that, at a very fundamental level, the prices of gas, electricity and energy have all come down. On the other hand, in India, the fundamental demands are still strong due to the construction activities going on in the country. There has been a revival in the auto industries, and passenger cars are also returning to their state as they were in the pre-Covid era.

A lead indicator which is commercial vehicles is still going very strong. Regarding pre-engineered buildings, the order book and industrial buildings are very strong. Thus, things are very strong in multiple areas. When it comes to the rural economy, it is a bit fragile.

The consumptions in the community’s lower ends are fragile, which is also reflected in the motorcycle sales in the rural region of India. This company is working towards picking up on things quarter on quarter. The company is also looking towards things positively, even if it is a decent monsoon. Thus, the company has a strong hold on the overall fundamental demands in India.

Also, the government is spending a good deal of money on the infrastructure in the country, which is very positive news on its own. Whatever happens around the world is surely a bit concerning the companies and industries highly dependent on the expo markets are cautious, which surely brings down a bit of the sentiment. The CEO also stated that they cannot be immune to whatever is happening all around the world, but they are surely working towards coping with it.