At the meeting of the Board of Directors a 100% dividend was declared and the proposal for a Bonus Share issue announced.

In an interaction with Business Analysts the same evening, the Managing Director, Mr B Muthuraman said that the company’s focus on revitalising its core business for a sustainable future and its quest to venture into new businesses will continue in 2004-05. The company will, during the year, continue to be the lowest cost producer of steel in the world; it will move away from commodities to brands; establish value creating partnerships with Customers & Suppliers; ensure that employees are enthused and happy; outsource strategically; and create an EVA Positive core business.

   
The company’s improved performance is due to efforts made across the company. It undertook breakthrough initiatives at its collieries to reduce ash content in clean coal from 17% to 16% and it enhanced hot metal production as well as output of older blast furnaces (8% -10%) by charging sponge iron. Several improvement initiatives including TOP, Aspire, Strategic Sourcing and Customer Product optimisation, which are in place also contributed to all-round performance improvements.

During the year, the incremental Economic Value Added by the company was Rs 516crores, creating a YOY of 156%. The company also undertook several initiatives to ensure better financial health. Tata Steel reduced its net working capital by Rs 873 crores and its debtors by Rs 270 crores, it repaid Rs 852 crores worth of high interest bearing loans, reduced the debt/equity ratio by 0.55 and its Gross Interest by Rs 122 crores.