Relief for Tata Steel as revenues rise faster than liabilities in FY21

Debt reduction led to sharp improvement in leverage ratio

Tata Steel has sprung a surprise in FY21, after close to a decade of struggle with high debt and stagnant revenues.
 
For the first time since its debt-fuelled acquisition of Corus (now Tata Steel Europe), revenues grew faster than liabilities in the last financial year, raising hope of a sustainable turnaround in its balance sheet and stock performance.
 
Gross debt fell 24 per cent year-on-year (YoY) to Rs 88,500 crore at the end of March this year, while consolidated revenues rose 5 per cent in FY21 to Rs 1.56 trillion.
 
The debt reduction led to a sharp