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Tata Steel Long Products Ltd.

BSE: 513010 Sector: Metals & Mining
NSE: TATASTLLP ISIN Code: INE674A01014
BSE 12:12 | 27 Jan 705.75 -11.95
(-1.67%)
OPEN

740.00

HIGH

740.00

LOW

705.75

NSE 12:04 | 27 Jan 708.35 -10.10
(-1.41%)
OPEN

715.00

HIGH

718.75

LOW

707.00

OPEN 740.00
PREVIOUS CLOSE 717.70
VOLUME 3619
52-Week high 1174.55
52-Week low 571.00
P/E 3.42
Mkt Cap.(Rs cr) 3,183
Buy Price 705.35
Buy Qty 7.00
Sell Price 706.45
Sell Qty 2.00
OPEN 740.00
CLOSE 717.70
VOLUME 3619
52-Week high 1174.55
52-Week low 571.00
P/E 3.42
Mkt Cap.(Rs cr) 3,183
Buy Price 705.35
Buy Qty 7.00
Sell Price 706.45
Sell Qty 2.00

Tata Steel Long Products Ltd. (TATASTLLP) - Chairman Speech

Company chairman speech

Dear Shareholders

As we continue to navigate the unprecedented challenges posed by the pandemic I hopeyou are safe and healthy along with your family. I would like to take this opportunity tothank each one of you for having faith and confidence in the Company.

The financial year 2020-21 was a year like none before in living memory and might wellbe a pivotal one for most of us. Beyond disrupting our lives health and socialinteractions it also severely impacted millions of livelihoods. Economies across theworld witnessed significant contraction and India was no exception. This led to a real GDPdecline of 15.7% in the first half of FY 2020-21. Green shoots of recovery were visible inthe third quarter of FY 2020-21 with 0.4% GDP growth and indicated a turnaround in theeconomy and commencement of a growth cycle. The improvement in domestic and global demandand favourable policy response from the government enabled the revival. However the riskstill prevails due to the resurgence in COVID-19 cases and on-ground challenges tovaccinate the entire population.

Year of turnaround

A once-in-a-century crisis of this severity and magnitude is a test of anorganisation's ability to respond and remain resilient. I am proud of the Board ofDirectors the Management and all employees of your Company who rose to the occasion andstayed committed to serving all our stakeholders.

"We are now ready to grow and diversify through a combination of new anddownstream businesses. Our endeavor is to drive scale and future growth derisk thebusiness through diversification strengthen the balance sheet and generate operationalsynergies through strategic re-structuring initiatives."

The operations team quickly reconfigured themselves into PODs (Point Of Delivery - abenchmark concept pioneered by our group company Tata Steel BSL) to restrict the COVID-19spread and create a safe environment while ensuring that production losses were kept tothe minimum possible even in Q1 FY 2020-21 when the lockdowns and slowdown of economicactivity was at its peak. The crisis also brought into sharp focus the criticality ofthroughput maximisation cash conservation and a stronger balance sheet.

Despite disruption caused by COVID-19 pandemic your Company achieved a top-line growthof 36% (Y-O-Y) driven by best-ever production for both steel and DRI mix enrichment andimproved market conditions especially in H2 FY 2020-21. Strong operational turnaroundtranslated into robust bottom line performance as well. Your Company's EBITDA touched`1154 crore and a net profit of `572 crore vis--vis net loss of `516 crore in FY2019-20. Your Company focussed aggressively on cashflow management while pursuingdeleveraging. I feel privileged to report that your Company has cleared in advance thelong-term loan instalments falling due until March 2027 and deleveraged by 50% (`1325crore) in FY 2020-21. This has helped enhance investor confidence as reflected in theCompany's market capitalisation.

Set to scale up

We are now ready to grow and diversify through a combination of new and downstreambusinesses. Our endeavor is to drive scale and future growth de-risk the business throughdiversification strengthen the balance sheet and generate operational synergies throughstrategic re-structuring initiatives. Further the Company is exploring possibilities toreach the name plate capacity of 1 million tonne coupled with investment in downstreamand finishing facilities for balancing the capacity and meeting customer requirements.

Getting future-ready

Sustainability remains a core issue for the steel industry and is a key pivot for ourstrategy. Your Company has developed a long-term strategy roadmap for 2030 and initiatedseeding actions in this area. Your Company is continuously working to strengthen itssafety practices and accelerate the pace of the technological and digital journey withrequired investments. Developing a culture of customer obsession agility and innovationare our key priorities. These would enable your Company to become future-ready not juststructurally and financially but culturally as well.

I thank all stakeholders for their continued support and look forward to a successfulFY 2021-22.

Warm regards

T. V. Narendran

Chairman

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