Tata Steel declares a bonus-payout of Rs235cr to employees for FY20

A memorandum of settlement (MoU) has been signed between the Tata Steel management and Tata Workers' Union (TWU).

Sep 15, 2020 01:09 IST India Infoline News Service

An employee sits in a railway train cabin at the steel works operated by Tata Steel in Port Talbot. Bloomberg
In major good news for employees, Tata Steel has announced a whopping Rs235.54cr bonus payout for the financial year FY20. On Sensex, Tata Steel stock surged by nearly 2% with an intraday high of Rs24.20 per piece.

It is being known that a memorandum of settlement (MoU) has been signed between the Tata Steel management and Tata Workers' Union (TWU) on Monday.

According to a PTI report, the memorandum was signed by Tata Steel CEO and Managing Director T V Narendran and TWU President R Ravi Prasad. It said. "Rs 235.54 crore bonus declared for the accounting year 2019-20. Despite a difficult year due to COVID-19, Tata Steel honoured its 3-year commitment to ensure complete bonus payment to employees."

During April - June 2020 (Q1FY21) quarter, Tata Steel's consolidated net loss stood at Rs4,609cr against a profit of Rs695cr a year ago same period. While revenue from operations was at Rs25,288.51cr declining by 29.65% from Rs35,947.11cr a year ago same period.

In its Q1FY21 press release, Tata Steel highlighted that at the consolidated level, about Rs2,000cr of costs were under absorbed due to the lower volumes and have been charged to the profit and loss account.

Given the uncertain economic environment, Tata Steel has built up a liquidity buffer of Rs20,144cr including Rs14,178cr of cash & cash equivalents as on June 2020, said the Q1 release.

At around 1.25 pm, Tata Steel stock was trading flat at Rs23.80 per piece on Sensex. 

Related Story