Tata Steel posts more than double net profit in Q1
Mumbai : Tata Steel on Monday reported more than double consolidated net profit at Rs 1,934 crore in the quarter ended June 30, as compared to Rs 921 crore in the year-ago period.
Its consolidated revenue from operations during the quarter was at Rs 37,833 crore, up 22 per cent from Rs 30,973 crore in the corresponding period last year.
Speaking on the company's performance, its Executive Director and CFO Koushik Chatterjee said: "The performance in this quarter has been very strong and the India operation delivered a stand-out performance of 31 per cent EBIDTA margin on the back of strong underlying business performance and improved market conditions."
"Our quarterly consolidated EBIDTA grew 33 per cent year-on-year and increased to Rs 6,559 crore, with an EBITDA margin of 17 per cent," he said.
"We are working on seeking all relevant approvals for our 50:50 JV with thyssenkrupp for our European business. We expect underlying steel demand to be strong, particularly in India. However, the rising trade tensions and the impact on the global economic momentum is a cause of concern," its CEO and Managing Director T.V. Narendran said.
During the quarter, the steel maker closed the acquisition process of Bhushan Steel under the Insolvency and Bankruptcy Code process, it said in a statement.
"The funding for the acquisition was designed with a prudent capital structure with significant equity component to ensure future value creation. The integration of the company is underway and is expected to deliver synergies over the next 24 months," Chatterjee added.
Its board approved issue of debt securities of up to Rs 12,000 crore in the form of Non-Convertible Debentures (NCDs) on private placement basis in one or more tranches.
The funds will be primarily deployed towards capex, repayment of debt and general corporate purposes, it said in a regulatory filing.