Page 28 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Report Statutory Reports Financial Statements
Integrated Annual Report 2020-21 Managing Finances Prudently 60-146 147-300

strategic performance

FInAnCIAL CAPITAL
Managing Finances Prudently Revenues (` in Cr.) eBITDA and eBITDA margin PAT and PAT margin*

10,337 10,357 10,200 1,949 1,163
our goal is to maximise value for our shareholders and ensure long-term business sustainability with 1,780 1,028
optimal capital allocation strategy. our business and balance sheet position, defined by strong cash flows 1,501
and manageable debt levels, protect our financial capital and support our growth. 19%
11% 10%
17%
sDGs impacted Financial Capital management 15% 436
FCF generation is essential to fund our growth operations (existing
and newly seeded ventures) and pay dividends to shareholders. 4%
We have a robust internal strategic planning process, for maximising
financial returns and FCF. Surplus funds are held in a basket of FY 2018-19 FY 2019-20 FY 2020-21 FY 2018-19 FY 2019-20 FY 2020-21 FY 2018-19 FY 2019-20 FY 2020-21
investments, including highly rated fixed deposits for immediate
Financial Capital access to cash and in businesses that deliver maximum returns on EBITDA (` in Cr.) EBITDA margin (%) PAT (` in Cr.) PAT margin (%)
priorities invested capital. Our investment plan is aligned to strategy and *Continuing operations only
ensure higher free cash market conditions.
flows (FCF) to fund
growth, reduce debt and Cash from operations (` in Cr.) net debt: equity net debt: eBITDA
pay dividends
strategic focus 2,037 0.29 2.6
Financial Capital 1,780 0.26 2.1
goals We are witnessing a recovery in the chemical sector and 1,581
customer demand. Plant operations are near to, or have
To maximise even surpassed, pre-Covid levels.
shareholders value
Invest in high margin and We aim to grow our business verticals with a sustained 0.13 1.1
high value products and focus on improving cash returns through efficiency and productivity and strengthening balance
business sheet through minimising financial leverage. Our robust financial planning process enables right
Maintain optimum balance between cash conservation and business investments leading to optimal debt reduction.
level of liquidity with Existing loans are being retired or refinanced to maintain a flexible capital structure.
sustainable growth FY 2018-19 FY 2019-20 FY 2020-21 FY 2018-19 FY 2019-20 FY 2020-21 FY 2018-19 FY 2019-20 FY 2020-21

operating working capital (` in Cr.) earnings Per share* (`) Market capitalisation (` in Cr.)
Focus on growth opportunities 1,818 37 19,153
1,703
We are undertaking expansion at the Mithapur 32
plant, towards de-bottlenecking and brownfield 1,401 15,000
expansion of Salt, Soda Ash and Sodium
Bicarbonate. Increase in Salt production will
support our agreement with Tata Consumer
Respective businesses responsible Products Limited. We are on track with UK’s
for their own cash flow 10 5,695
largest carbon capture and usage plant (CCU),
We make each business unit responsible for along with a new power plant for the UK
generating cash to fund its own operations. Salt operation. This will significantly reduce
This ensures each BU takes optimal steps to TCE’s carbon footprint and enhance its export FY 2018-19 FY 2019-20 FY 2020-21 FY 2018-19 FY 2019-20 FY 2020-21 FY 2018-19 FY 2019-20 FY 2020-21
reduce expenses and enhance efficiency. competitiveness. Operating Working Capital = Inventories plus *Continuing operations Market Capitalisation Based on Closing Price as
Receivables minus Payables on March 31
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