Tata Steel net profit down by 84 per cent in Q4
Friday - April 26, 2019 12:08 am , Category : BUSINESS
Mumbai/ Kolkata, April 26 (IANS) Steel giant Tata Steel on Thursday reported a whopping 84 per cent decline in its consolidated net profit, to Rs 2,295 crore, during the fourth quarter of the financial year 2018-19 as compared to Rs 14,688 crore in the corresponding period of the previous fiscal.Its consolidated revenue for the quarter under review was at Rs 42,424 crore, up by 26 per cent from Rs 33,705 in the year-end ago period.During the quarter, its consolidated steel production and deliveries grew year-on-year by 27 per cent and 29 per cent respectively while India production and deliveries increased year-on year by 46 per cent and 55 per cent respectively.Tata Steel's CEO & Managing Director T.V. Narendran said: "Tata Steel continues to grow its footprint in India in terms of volumes, downstream capability and product portfolio."Despite subdued steel markets and weak growth in its key customer segments, its volumes in India grew by over 33 per cent this year, leading to a significant improvement in overall profitability and cashflows, he said."The proposed merger of Tata Steel BSL with Tata Steel will accelerate operational synergies and simplify our corporate structure. Our 5 MTPA Kalinganagar Phase II expansion will help us to further consolidate our presence in India and strengthen our financial performance," he added.The company said its gross debt decreased by Rs 8,781 crore during Q4FY19."We will continue to target a further reduction in the gross debt by another one billion dollars by the end of Financial Year 2020," Executive Director and CFO Koushik Chatterjee said.Tata Steel reported one of the highest-ever consolidated adjusted EBITDA with a record growth of 55 per cent year-on-year to Rs 30,734 crore and 27 per cent year-on-year increase in revenues to Rs 157,669 crore in FY19."Despite the liquidity issues in the domestic markets, we were able to extend our debt maturity profile by successfully raising Rs 4,315 crores through 15 years non-convertible debentures and completing the long-term financing for Tata Steel BSL."The Board of Directors of Tata Steel and Tata Steel BSL have proposed a merger of both the companies in the interest of maximizing value to all stakeholders."The merger will drive operational synergies and efficiencies, reduce the regulatory burden and simplify the group structure," a company statement said.Both boards have relied on valuation reports and fairness opinions provided by independent experts and recommend a merger ratio of 15 shares of Tata Steel BSL for every 1 share of Tata Steel. The merger is subject to shareholders and other regulatory approvals.Tata Steel and Thyssenkrupp AG are working together to secure the required regulatory approvals for the proposed 50:50 joint venture in Europe.
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