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Tata Steel has reported a consolidated net loss of ₹1,168 crore in the March quarter against a net loss of ₹3,042 crore logged in the same period last year.
The company made a provision of ₹4,069 crore in the March quarter for discontinuing the defined benefit section of the British Steel Pension Scheme to future accruals. A loss of ₹451 crore from discontinued operations also dragged the company’s profitability.
Revenue was up 30 per cent at ₹35,305 crore (₹27,071 crore) on the back of sharp increase in profit margin. Earnings before interest, tax, depreciation and amortisation was up at ₹6,982 crore (₹2,197 crore).
The closure of defined benefit in the British Steel Pension Scheme meant that all active members of the scheme became deferred pensioners which resulted into a crystallised non-cash curtailment strain of ₹3,627 crore and is the first step towards restructure of UK operations, said Tata Steel in a statement on Tuesday.
As on March end, the gross debt was at ₹83,014 crore, lower by ₹1,700 crore from the previous quarter, despite capital expenditure of ₹2,092 crore during the quarter. Net debt was at ₹72,367 crore, reduced by over ₹4,300 crore.
EBITDA from Indian operations were up 93 per cent at ₹4,324 crore on the back of supportive realisations, strong growth in deliveries and ramp-up of Kalinganagar plant.
In Europe, the company’s liquid steel production in the fourth quarter was flat at 2.62 mt, while for the full year it was down by 5 per cent due to focus on higher-value product sales.
EBITDA in Europe for the last financial year was £536 million (₹4,705 crore), compared to the loss of £52 million (₹513 crore) in FY-16, due to stronger market conditions, currency tailwinds and restructuring of UK operations.
TV Narendran, Managing Director, Tata Steel, said the focus on cost improvement initiatives and integrated operations helped to contain the impact of rising raw material prices.
Koushik Chatterjee, Group Executive Director (Finance and Corporate), said the consolidated EBITDA for Tata Steel Group was in excess of ₹17,000 crore for the fiscal year 2017, which is the highest in the last six years.
The company’s scrip was up by 0.27 per cent at ₹457 on Tuesday.
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