TATA STEEL Q1 PROFIT MORE THAN DOUBLES TO ₹1,934 CR
BENGALURU: Tata Steel Ltd’s quarterly net profit more than doubled, but still came in well below market expectations, hurt by rising expenses and a one-off charge.
India’s biggest steel producer by assets said it took a one-time charge of ₹344 crore on a consolidated basis.
The bulk of this came from an exceptional charge of ₹335 crore at its Indian business, mainly due to a provision made for additional interest on differential royalty paid on coal.
Net profit was ₹1,934 crore in the three months to the end of June, compared to a profit of ₹921 crore a year earlier. That compared with the analyst estimate of a profit of ₹2,644 crore, according to Thomson Reuters I/B/E/ S.
Tata recently agreed a joint venture with Germany’s Thyssenkrupp creating Europe’s number two steelmaker, after two years of negotiations, hoping it would help them respond to a volatile steel industry.
Steel deliveries rose over 12% to 6.55 million tonnes, while Tata Steel India posted a rise of about 7.9% in total steel deliveries for the quarter. Tata Steel said total revenue from operations rose 22.1% to ₹37,833 crore, while total expenses rose about 21%.
Steel deliveries rose over 12% to 6.55 million tonnes, while Tata Steel India posted a rise of about 7.9% in total steel deliveries for the quarter.