Tata Steel Q4 net profit at Rs 14,688 crore

Tata Steel today reported consolidated net profit of Rs 14,688.02 crore for the fourth quarter ended March, driven by an "exceptional" gain of Rs 11,376 crore.

It had clocked a net loss of Rs 1,168.02 crore in the same quarter last year.

"The exceptional gain was Rs 11,376 crore, which includes a non-cash gain of Rs 14077 crore on account of restructuring of UK pension scheme in the March quarter," the company said in a release.

The total income of the company increased to Rs 36,407.19 crore in the quarter, against Rs 35,457.06 crore in the year-ago period.

The total expenses stood at Rs 32,626.42 crore, compared with Rs 31,132.02 crore.

For financial year 2017-18, the steel maker reported a net profit of Rs 17,763 crore, against a loss of Rs 4,169 crore in the previous fiscal.

T V Narendran, chief executive officer and managing director, Tata Steel, attributed the robust performance in FY18 on strong execution strategy, supported by favourable global demand-supply balance.

"During the year, our Indian operations delivered volume growth better than the market on the back of the ramp-up at our Kalinganagar plant and the strength of our marketing network and brand equity," he said.

Narendran said growth was broad-based across marketing segments and added that Tata Steel Europe had a good quarter despite currency headwinds.

"The UK pension scheme restructuring process has also been completed. The 50:50 JV discussion with Thyssunkrupp is progressing well and we are committed towards building a strong European portfolio," he said.

He added that the company continues to execute its strategy of expanding footprint in India.

"Kalinganagar Phase 2 expansion is progressing well, which will take our capacity from 13 million tonnes (mt) to 18 mt of crude steel. I am also happy to share that NCLT has given its approval on our resolution plan for Bhushan Steel. We have also received CCI approval for this," he said.

On the steel outlook, he said the company is closely watching the developments in global steel trade because of the protectionist measures by the US and added, "However, we continue to be bullish on steel prices and spreads with improving demand situation in India."