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Tata Steel has reported that its net profit plunged 84 per cent in the March quarter to ₹2,295 crore against ₹14,688 crore logged in the same period last year due to higher operational and finance costs.
Sales were up 24 per cent at ₹41,186 crore (₹33,278 crore).
The company has announced a dividend of ₹13 a share on fully paid equity share and ₹3.25 a share on partly paid equity share. The dividend will be paid on July 23 after getting the shareholders approval at the Annual General Meeting to be held on July 19.
Merger of Bhushan Steel
Tata Steel has decided to merge erstwhile Bhushan Steel (now Tata Steel BSL) with itself to maximise value to all stakeholders. Tata Steel will issue one share of itself for every 15 shares of Tata Steel BSL. The merger will drive operational synergies and efficiencies, reduce the regulatory burden and simplify the group structure, said the company in a statement on Thursday.
Sales volume in India increased 12 per cent to 4.72 million tonnes (mt), while consolidated sales was up at 7.52 mt (5.85 mt).
Acquisitions, JVs
On Tata Steel and thyssenkrupp AG proposed joint venture, it said the European Commission has issued its ‘Statement of Objection’ and a comprehensive package of proposed remedies have been submitted.
Tata Sponge Iron Limited, a subsidiary of Tata Steel, has recently completed the acquisition of Usha Martin’s steel business for ₹4,094 crore.
TV Narendran, Managing Director, Tata Steel, said despite subdued steel markets, the company’s domestic sales volume grew leading to a significant improvement in overall profitability and cash flows.
In the fourth quarter, the company’s consolidated gross debt has come down a tad to ₹1 lakh crore from ₹1.18 lakh crore. Despite the liquidity issues in the domestic markets, Tata Steel had extended its debt maturity profile by raising ₹4,315 crore through 15 years non-convertible debentures and completed long-term financing of Tata Steel BSL.
Shares of the company were down 2.74 per cent at ₹511 a piece on Thursday.
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