Tata Steel posts Rs 10,187 crore profit in Q4 on exceptional gain of Rs 11,376 crore
Tata Steel on Wednesday posted a profit of Rs 10,187.23 crore for the quarter ended March 31, 2018 against a consolidated loss of Rs 725.14 crore in the corresponding quarter last year. ETNow poll had predicted a net profit of Rs 2,323 crore.
The company received one-time exceptional gain of Rs 11,376.14 crore in March quarter. The exceptional gain includes a non-cash gain of Rs 14,077 crore on account of restructuring of UK pension scheme.
Consolidated total revenue increased 2.34 per cent to Rs 32,132.30 crore in Q4FY18 over Rs 35,304.89 crore in Q4FY17.
Revenue of Tata Steel India, however, declined to Rs 16,280.95 crore during the quarter under review against Rs 17,113.13 crore in the same period last year.
The board of the company recommended a divided of Rs 10 per ordinary share of on face value of Rs 10 each and Rs 2.50 per partly paid ordinary share of Rs 10 each for the financial year 2017-18.
Commenting on the result, TV Narendran, CEO & MD said: "Tata Steel performance has been robust in FY18 driven by our strong execution strategy and supported by favourable global demand-supply balance. During the year, our Indian operations delivered volume growth better than the market on the back of the ramp-up at our Kalinganagar plant and the strength of our marketing network and brand equity. Growth was broad-based across our marketing segments.”
Gross debt as on March 31 increased to Rs 92,147 crore, mainly driven by foreign exchange translation impact. Net debt declined to Rs 69,215 crore.
Tata Steel, whose bid for debt-ridden Bhushan Steel (BSL) was approved by NCLT, would implement the resolution plan through its step-down subsidiary Bamnipal Steel.
“Pursuant to the Resolution Plan, Bamnipal Steel Limited (BNPL) will initially subscribe to 72.65 per cent of the equity share capital of BSL for an aggregate amount of Rs 158.89 crore and provide additional funds aggregating of Rs 35,041.11 crore by way of debt/convertible debt,” Tata Steel said in a release.