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Tata Steel Q3 net profit jumps 5-fold to Rs 1,136 cr

Press Trust of India  |  New Delhi 

today reported five- fold rise in consolidated net profit to Rs 1,135.92 crore for the third quarter ended December 31.

The company had posted consolidated net profit of Rs 231.90 crore in the corresponding quarter of previous fiscal, it said in a BSE filing.

The consolidated income during October-December quarter increased to Rs 33,672.48 crore, from Rs 29,154.75 crore in the year-ago period.

Over the last nine months, delivered strong consolidated operational performance across geographies and the firm expects this momentum to continue as markets are expected to remain favourable, its and MD T V said.

"Globally, have been buoyant with improved trade position in along with cost push from raw materials...In India, we have witnessed strong volume growth across the verticals as well as an increase in realisations," added.

The company's focus on India, he said, continues as Tata Steel looks to expand its Kalinganagar site as well as pursue inorganic growth opportunities.

The company, he said, is progressing well on the JV with thyssenkrupp and "we are committed to building a long-term investment in strong European portfolio".

The company's Koushik Chatterjee said that group revenues witnessed robust growth driven by improved volumes in and stronger realisations across geographies, on the back of improvement in commodity prices.

Gross debt during the quarter has come down by Rs 1,658 crore mainly due to repayments and forex impact, Chatterjee said, adding that the liquidity position of the group remains very robust with Rs 22,544 crore in cash and cash equivalents and

"We continue to focus on opportunistically raising capital and optimising our financing flexibility," he added.

Commenting on operations, the company said the grew by four per cent year-on-year and two per cent quarter-on-quarter to 3.27 million tonnes in the third quarter of the current fiscal.

The board gave its go-ahead to five million tonnes per annum (MTPA) expansion at Kalinganagar, the company said, adding that the total estimated project cost is Rs 23,500 crore, including augmentation of raw material facilities and investment in 2.2 MTPA cold rolling mill facility.

The project will be completed in 48 months from zero date, the company said.

The board also approved rights issue of equity shares for an amount not exceeding Rs 12,800 crore.

"The proceeds will be used for the purpose of deleveraging and The issue will open on February 14, 2018 and will close on February 28, 2018," it said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, February 09 2018. 17:50 IST
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