Bhushan Steel Q2 net profit at Rs 60.7 crore

Bhushan Steel Tuesday posted a standalone net profit of Rs 60.7 crore for the quarter ended September 2018.

The company, which was acquired by Tata Steel in May, had posted a net loss of Rs 467.43 crore in the year-ago period, Bhushan Steel said in a filing to the BSE.

Its total income during July-September quarter increased to Rs 5,907.47 crore, over Rs 4,325.60 crore in the year-ago period, the filing said.

Total expenses of Bhushan Steel increased to Rs 5,941.48 crore, over Rs 5,669.91 crore in the corresponding quarter of the previous fiscal.

In May 15, the NCLT approved the resolution plan submitted by Tata Steel Ltd, which provided, inter alia, the acquisition of the company by TSL, through its wholly owned arm Bamnipal Steel Ltd (BNPL).

Pursuant to the resolution plan, BNPL subscribed to 72.65 per cent of the equity share capital of BSL for an aggregate amount of Rs 158.89 crore and provided additional funds aggregating to Rs 35,073.69 crores to BSL by way of debt/convertible debt.

The remaining 27.35 per cent of Bhushan Steel share capital will be held by its existing shareholders and the financial creditors who received shares in exchange for the debt owed to them.

"The funds received by BSL as debt and equity have been used to settle the sustainable debts owed to the existing financial creditors of BSL, CIRP costs and employee dues, by payment of Rs 35,232.58 crore," the filing said.

The remaining unsustainable debts of Rs 25,285.46 crore were novated by the financial creditors to BNPL for a consideration of Rs 100 crore, it said.

"BNPL, in its capacity as the promoters of BSL, has waived off the unsustainable debts less cost of novation and the same has been recognised as equity contribution during the half year ended September 30, 2018," the filing said.

Shares of the company closed at Rs 29.40 apiece on the BSE, up 2.26 per cent from the previous close.