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Tata Steel third-quarter standalone profit soars on robust production


(Reuters) - Ltd reported an 83.6 percent surge in third-quarter standalone net profit on Friday, aided by robust domestic production.

Standalone profit came in at 24.56 billion rupees ($344.94 million) compared with 13.38 billion rupees in the same period a year earlier, the steelmaker said.

According to I/B/E/S data from Refinitiv, analysts on average had expected a profit of 25.40 billion rupees.

On a consolidated basis, the company posted a net profit of 22.84 billion rupees. However, the numbers were not comparable due to its recent acquisition of BSL Limited (formerly Bhushan Steel Ltd)

In May last year, the firm, one of the flagship of the giant salt-to-software bought a 72.7 percent stake in which was in bankruptcy court.

This was the company's first major acquisition after Britain's Corus, now called Europe.

The company has struck a deal with Germany's to combine its UK business into a joint venture with the German giant.

This would allow Tata Steel to cut debt at the group level and bring focus back to through acquisitions, Tata Steel N Chandrasekaran had said in July.

The company plans to double its capacity in in five years.

"Despite a sharp drop in international steel prices, we were able to maintain overall realizations and increase volumes significantly in " T V Narendran said.

Local Indian producers are suffering from a double whammy of a rise in cheap imports and low domestic steel prices, which threaten to wipe out healthy profits they have clocked in recent years.

Analysts have said that due to pressure on steel prices, the third quarter could be the last good quarter for steelmakers before a long period of muted growth.

Consolidated rose 11 percent year on year, while in India surged 34 percent, the headquartered company said.

($1 = 71.2000 Indian rupees)

(Reporting by Chandini Monnappa in Bengaluru; Editing by Kirsten Donovan/Keith Weir)

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

First Published: Fri, February 08 2019. 17:23 IST