Tata Steel Ltd Q2 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ritesh Shah - Investec Bank plc, Research Division - Analyst : Sir, my first question is, in your initial remarks, you did indicate proceeds will be used to deliver the balance sheet, and you also said to make it self-sufficient and not make it dependent on India. Just wanted to understand if the transaction goes through [it's up]. Will that be money which will come in at Tata Steel U.K. or Tata Steel Europe level? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 13, 2020 / 2:00PM, TISC.NS - Q2 2021 Tata Steel Ltd Earnings Call

Question: Ritesh Shah - Investec Bank plc, Research Division - Analyst : That's quite encouraging. And sir, just to understand that, if I look at SSAB, Europe number around 3.4, 3.5] legalize us] more than twice. I think, from a profitability point of view, it's significantly better. It essentially means there will be a net cash infusion over there. Can you help me understand the numbers a bit better for (inaudible). Last year's reported numbers on a clean EBITDA basis was $912 million, with U.K.'s loss of $226 million. Can you help quantify how much was the Netherlands' EBITDA and the net cash number right now?

Question: Ritesh Shah - Investec Bank plc, Research Division - Analyst : That's quite encouraging. And just 2 follow-up questions. One was on Tata Steel U.K. quotas. Given the new steel safeguard duties, what does this mean for U.K. operations? And given these quotas are on a quarterly basis, correct me if I'm wrong. That's the first thing. And secondly, on Bhushan merger and tax synergies, I think this has been pending since quite some time. Those are 2 the questions, sir.

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : Great set of numbers and good managed deliveries. Just on the plan of continuing this deleveraging. We had a good debt reduction. We have close to INR 96,000 crores. So without taking into consideration any European proceeds, where are we heading this towards a fiscal end this year and next year? Because we were on path for $1 billion reduction, which we have almost achieved, but the cash flows are very strong. So -- and this quarter also had a big benefit of working capital reduction. Which will go up when the production increases. So if you can give some road map on the consolidated debt movement? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 13, 2020 / 2:00PM, TISC.NS - Q2 2021 Tata Steel Ltd Earnings Call

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : Yes. And but, sir, last question, again, on the Europe debt level, if I heard you correctly, the Tata Steel Europe debt is roughly EUR 1.7 billion, right?

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : So there is over and above the working capital is also there in the European entity? All in...

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : Okay. And if I remember the structure correctly, the European entity was funded equity from Singapore via India standalone route, right? So if you can have a number of how much -- because why I'm asking this question is that Netherlands divestment proceeds as per estimates would be much more going by the profitable lens, which means that is the entire debt would be paid up and you'll retain a big amount of cash at the European level. So how do we upstream that cash? So, are there any other liability...

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : Okay. So is there any shareholder loan which has to be returned by Europe to some other entity on the standalone side? Or there is no such shareholder loan pending?