Companies

Tata Steel net profit doubles to ₹1,934 cr on better realisations

Our Bureau Mumbai | Updated on August 13, 2018 Published on August 13, 2018

The Tata Steel board also approved the re-appointment of TV Narendran as Managing Director and CEO for five years   -  Ashoke Chakrabarty

Board gives nod to raise ₹12,000 crore through non-convertible debentures

Tata Steel reported that its consolidated net profit in the June quarter more than doubled to ₹1,934 crore (₹921 crore) on the back of lower base, fresh revenue from Bhushan Steel (holding company Bamnipal Steel) and better realisations in India.

The total revenue was up 22 per cent at ₹37,434 crore (₹30,780 crore). The company has made a provision of ₹344 crore for various claims against ₹617 crore logged in last year.

The board of directors at the meeting on Monday approved a proposal to raise ₹12,000 crore through issue of non-convertible debentures on private placement basis in one or more tranches. The fund will be primarily deployed towards capex, repayment of debt and general corporate purposes, said the company in a statement.

The board also approved the re-appointment of TV Narendran as Managing Director and Chief Executive Officer for five years with effect from September 19, the last day of his present contract.

Production rises 11%

The overall production was 11 per cent at 6.92 million tonnes (6.23 mt) while sales were up 12 per cent at 6.55 mt (5.83 mt). The company’s Ebidta was up 33 per cent at ₹6,559 crore (₹4,393 crore).

Revenue from the company’s India operations increased 14 per cent to ₹16,405 crore (₹14,422 crore) while Bamnipal Steel logged in a revenue of ₹2,107 crore for the first time after its acquisition through insolvency process.

Ebitda from Indian operations jumped 75 per cent to ₹5,118 crore on account of better realisations while Ebitda margin for the quarter was 31 per cent. The company has taken an exceptional charge of ₹335 crore, including provision for additional interest on differential royalty on coal.

Narendran said though the underlying steel demand continues to be strong in India, the rising trade tensions and the impact on the global economic momentum is a cause of concern.

“The Kalinganagar phase two expansion is progressing well, with work starting on the Cold Rolling Complex.

“Our Bhushan Steel acquisition is another significant milestone in our growth plans and we are confident that it will add significant value to our portfolio,” he said.

Published on August 13, 2018
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