Tata Steel posts Rs 14688 crore net profit in Q4

  • Tata Steel posts Rs 14688 crore net profit in Q4

Tata Steel posts Rs 14688 crore net profit in Q4

Tata Steel Ltd was helped to a quarterly profit of Rs 14,688 crore ($2.17 billion) by a one-off pensions gain, in contrast with an Rs 1,168 crore loss a year earlier. The fall in production was due to technical snag led shutdown of a blast furnace at Kalinganagar plant.

India's largest private sector steel maker recorded its best ever annual performance with net profit climbing to Rs 6,113 crore in 2017-18, up 76 per cent from Rs 3,467 crore in the previous fiscal.

The issue has been resolved and the plant is now running at full capacity, it said.

In the same quarter a year ago, Tata Steel booked charges of Rs 4,069 crore, including curtailment charges relating to the closure of Tata Steel Europe's pension scheme. "Growth was broad-based across our marketing segments", its CEO and Managing Director TV Narendran said.

The company also expressed concern over the delay in the entire process as already 270 days have passed for the resolution process, after which, according to IBC rules, the asset has to be liquidated.

"Tata Steel Europe had a good quarter despite currency headwinds".

"Engineering work is going as per plan and construction work has also started".

Total revenue from operations rose 16.2 percent to 208.17 billion rupees and the steelmaker also said it achieved record crude steel production in the quarter at 4.31 million tonnes, up 5 percent year on year.

The domestic steel demand grew at a healthy rate of 8 per cent in the March quarter, however, imports remained at elevated levels in FY18, indicating that the trade remedial measures in place are ineffective, he said. "However, we continue to be bullish on steel prices and spreads with improving demand situation in India", Narendran said.

"We have chose to expand our capacity from 18 mt (million tonne) to 24.7 mt, which includes addition of one mt at Vijaynagar and 0.67 mt at Dolvi unit, and also expand our downstream projects by 2020", he said. Our USD 1.3 billion global bond issue in January 2018 helped us extend our maturity profile.