Tata Steel net leaps

Tata Steel's profit after tax jumped five times during the third quarter of 2017-18 to Rs 1,136 crore.

By Our Special Correspondent in Calcutta
  • Published 10.02.18

Calcutta: Tata Steel's profit after tax jumped five times during the third quarter of 2017-18 to Rs 1,136 crore.

The company had reported a profit of Rs 232 crore in the same period last fiscal. Revenue from operations on a consolidated basis also went up 15 per cent to Rs 33,447 crore from Rs 29,025 crore a year ago.

Deliveries from India, aided by Kalinganagar operations, stood at 3.30 million tonnes compared with 2.99 million tonnes in the same period last year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) per tonne of steel in the third quarter went up by 24.3 per cent to Rs 14,094 in India. During the third quarter of the last fiscal, EBITDAonne - a reflection of the underlying strength of the business and pricing environment - was Rs 11,332.

On a consolidated basis, EBITDA was up 47 per cent to Rs 8,836 per tonne from Rs 6,009 per tonne. This is despite the fact that the European operations recorded a 14.4 per cent decline in EBITDA per tonne in the reporting quarter.

The jump in profit came despite the company's provisions of Rs 1,115 crore during the third quarter on account of mining levies (contribution to the district mineral foundation).

Commenting on the result, T.V. Narendran, CEO and managing director of Tata Steel Group, said markets were expected to remain favourable. "Globally steel prices have been buoyant with an improved trade position in China along with a cost push from raw materials... In India, we have witnessed a strong volume growth across the verticals as well as an increase in realisations.

"Our European operations were marginally lower... Our Southeast Asian business has delivered strong performance due to better management of spreads," he said.

"Our focus on India continues as we look to expand our Kalinganagar site as well as pursue inorganic growth. We are progressing well on the JV with Thyssenkrupp and are committed to a long-term investment in strong European portfolio," Narendran said.

Group CFO Koushik Chatterjee pointed out that gross debt had come down by Rs 1,658 crore because of repayments and forex impact in the third quarter.