According to the annual report issued by Tata Steel, the company’s strong liquidity reached Rs. 1,524.8 billion for the entire fiscal year ended March 31, 2019, and its net debt in FY 2019 soared to Rs. 284.71 billion. Net debt has more than doubled from the previous year. The combined net debt tripled in FY 2019. Mainly due to current investment and a decrease in cash and bank balances.
Cash and cash equivalents decreased by 404.4 billion rupees during the period 2018-2019. According to the report, the combined net debt rose sharply from 692.15 billion rupees in the previous fiscal year to 948.79 billion rupees, an increase of nearly 37%. The company's independent business reported an increase in total debt and a decrease in investment. Total debt jumped nearly 29% year-on-year, exceeding the psychological level of Rs. 1 billion. This figure amounts to a total of Rs. 1,186,600 crore compared to Rs. 1,214.7 billion in the previous fiscal year.
It must be pointed out that Tata Steel has made two strategic acquisitions - BhushanSteel and UshaMartin. On the basis of the merger, the company's revenue and EBITDA and profit before amortization reached an all-time high. For more than a decade, the company has created positive free cash flow, reaching Rs. 8839 billion during the year. Tata Steel reported that its liquidity was good as of March 31, 2019, at Rs. 1,282.8 billion, a sharp drop of nearly 50% from the previous fiscal year. On a comprehensive basis, Tata Steel spent $9,091 million in capital expenditures.
