Tata Steel gains
Calcutta: A one-time non-cash gain of Rs 14,077 crore from the pension scheme of the UK operation propelled Tata Steel's net profit to Rs 14,688 crore in the January-March quarter of 2017-18, compared with a Rs 1,168-crore loss in the same period of the previous fiscal.
EBIDTA, a measure of operational performance on a consolidated basis, however, declined during the fourth quarter to Rs 6,579 crore from Rs 6,982 crore in the corresponding quarter a year ago.
Turnover was up during the last quarter to Rs 36,132 crore from Rs 35,305 crore in the same period last year.
On an annual basis, profit after tax stood at Rs 17,763 crore, swinging from the loss of Rs 4,169 crore reported in 2016-17.
Likewise, the EBIDTA also went up to Rs 22,045 crore in 2017-18 from Rs 17,025 crore a year ago. The turnover stood at Rs 133,016 crore in 2017-18, up from Rs 117,420 crore in 2016-17.
The Tata Steel board declared a dividend of Rs 10 per ordinary share and Rs 2.504 for partly paid shares.
In a disclosure made to the stock exchanges, the company said the proposed 50:30 joint venture with Germany's Thyssenkrupp was "progressing well".
"The binding agreements are expected to be signed in Q1 (first quarter) of FY19 (2018-19) . The consultation process with Tata Steel's work councils across Europe is also progressing, including discussions with trade unions," the letter said.
On the steel outlook, T.V. Narendran, the CEO and managing director of Tata Steel Group, said, "We are closely watching the developments in global steel trade because of US protectionist measures. However, we continue to be bullish on prices and spreads with the improving demand situation in India."
On the results, Koushik Chatterjee, executive director and CFO, said: "FY18 has been a good year for us as the group delivered a strong top and bottomline growth. Our India business did very well with industry leading EBITDA margins and strong cash flows. Europe performance is also improving with restructuring, plant upgrades and support from better pricing in EU."