India's Tata Steel profit lifted by one-off UK pension gain

  • India's Tata Steel profit lifted by one-off UK pension gain

India's Tata Steel profit lifted by one-off UK pension gain

JSW Steel Ltd on Wednesday reported a net profit of Rs2,879 crore for the March quarter, almost triple the Rs1,008 crore it reported year ago on higher demand and better prices. The company recorded an exceptional charge of Rs 11,376 crore in the fourth quarter of fiscal 2018, which included a non-cash gain of Rs 14,077 crore on account of the restructuring of its United Kingdom pension scheme.

Britain's pensions regulator agreed past year to allow Tata Steel U.K.to cut pension scheme liabilities, the main stumbling block in Tata's efforts to merge its European operations with Germany's Thyssenkrupp. The company said that the agreement for the joint venture is expected to be signed in the current quarter.

Total revenue from operations rose 16.2 percent to 208.17 billion rupees and the steelmaker also said it achieved record crude steel production in the quarter at 4.31 million tonnes, up 5 percent year on year. ETNow poll had predicted a net profit of Rs 2,323 crore.

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 a year ago.

Sajjan Jindal-led JSW Steel today said the company has chose to invest an additional Rs 17,600 crore for increasing its steel capacity to 24.7 million tonne per annum (mtpa) by 2020.

JSW Steel has reported a 186 per cent jump in net profit and a 16 per cent growth in revenue in the fourth quarter, backed by strong margins of the alloy across the globe.

T V Narendran, chief executive officer and managing director of the company, said, "Tata Steel performance has been robust in FY18 driven by our strong execution strategy and supported by favourable global demand-supply balance. Growth was broad-based across our marketing segments".

"We also successfully completed a $2bn Rights Issue, one of the largest equity issuance in India", he said.The shares of the company closed at Rs 622.05 apiece on the BSE, down 0.32% from the previous close.