Tata Steel Q2 net up 37%, gains from land sale

A one-time gain of Rs 1,147 crore on account of proceeds from land sale helped Tata Steel post 37 per cent rise in consolidated net profit at Rs 1,254.33 crore for the second quarter ended September 30, 2014-15.
Its profit was Rs 916.77 crore in the July-September quarter of 2013-14.
The profit before exceptional item and tax stood at Rs 1,302 crore, from Rs 1,398 crore.
Tata Steel's total income declined to Rs 35,777 crore in the second quarter of 2014-15 from Rs 36,645 crore a year ago. Expenses also fell to Rs 33,564 crore from Rs 34,384 crore.
Hot metal and crude steel production in Indian operations reached 2.58 million tonnes and 2.27 MT respectively in Q2 FY'15. Saleable steel production increased to 2.2 MT. The deliveries increased to 2.11 MT versus 2.04 MT in Q2 FY'14.

Indian operations reported stable performance despite weak monsoon. European operations maintained the level of year-on-year improvement in financial performance that was established in the first quarter. Production and deliveries were higher than the first quarter, despite extended summer shutdowns, the company said here.

"Despite subdued market conditions, the company has registered an all-around growth in H1 with an increase in both, saleable production and deliveries. Our strategy of focusing on the auto segment, particularly the high-end segment, and the retail market yielded rich dividends," Tata Steel India and South East Asia Managing Director T V Narendran told reporters here.
He said: "Our focus on product mix enrichment has resulted in a 22 per cent y-o-y increase of sales to the automotive segment and a 38 per cent y-o-y increase in the hi-end segment.

"We are hopeful that the stable political climate will trigger a steel-intensive economic revival and we are well positioned to take advantage of any improvement in the steel demand in the country."
The company's Group Executive Director (Finance and Corporate) Koushik Chatterjee said: "Despite several challenges in the market and the environment, the Tata Steel Group was able to maintain its profitability levels during the quarter. The company generated around Rs 4,400 crore of cash flows from operations that was deployed primarily in the ongoing capital expenditure programme helping us marginally decrease the net debt levels."
The company has also significantly de-risked the balance sheet with the completion of the refinancing of the international debt portfolio at better than before terms and long tenured repayments.