Tata Steel’s quarterly profit melts 70% to Rs 337 crore
15 Aug 2014 5:15 AM IST
Tata Steel group had reported a net profit of Rs 1,139.01 crore during the corresponding quarter in 2013-14 .
Net profit for the quarter came in at Rs 337 crores, affected by exceptional charges despite improved operating performances across all geographies, the company said in a statement.
Exceptional charges included ‘the non-cash write down of goodwill and other assets of Rs 451.25 crore and Rs 1,125.40 crore respectively in its joint venture Rio Tinto Benga (Mauritius Ltd)’, according to a BSE filing by the company.
In July this year, Rio Tinto has reached an agreement for sale of Rio Tinto Coal Mozambique which includes the Benga project in which the company has 35 per cent stake, the statement said.
‘The company undertook an impairment review exercise of its investment in the Benga project and Board approved a non-cash write-down of Rs 1,577 crore,’ it added.
During the quarter, the company had divested its entire stake in its joint venture Dhamra Port Company to Adani Ports and Special Economic Zone and exceptional charges also include profit of Rs 1,270.21 crore on sale of this non-current investment.
Net sales rose to Rs 36,143.27 crore in the quarter under review from Rs 32,558.61 crore a year ago.
Total expenses went up to Rs 33,704.92 crore from Rs 30,520.02 crore. Tax expenses trebled to
Rs 1,080.41 crore during the quarter compared with Rs 351.39 crore in a year-ago period.
Finance costs shot up to Rs 1,252.37 crore during the quarter under review from Rs 992.44 crore a year-ago.
Tata Steel sold 6.46 million tonnes of steel in the first quarter, up from 6.08 million tonnes a year earlier.
‘Operating performance improved across all geographies as Group EBITDA (earnings before interest, taxes, depreciation and amortisation) for the first quarter ended 30 June, 2014 rose to Rs 4,325 crore from Rs 3,755 crore the year before,’ the statement said.
Net profit for the quarter came in at Rs 337 crores, affected by exceptional charges despite improved operating performances across all geographies, the company said in a statement.
Exceptional charges included ‘the non-cash write down of goodwill and other assets of Rs 451.25 crore and Rs 1,125.40 crore respectively in its joint venture Rio Tinto Benga (Mauritius Ltd)’, according to a BSE filing by the company.
In July this year, Rio Tinto has reached an agreement for sale of Rio Tinto Coal Mozambique which includes the Benga project in which the company has 35 per cent stake, the statement said.
‘The company undertook an impairment review exercise of its investment in the Benga project and Board approved a non-cash write-down of Rs 1,577 crore,’ it added.
During the quarter, the company had divested its entire stake in its joint venture Dhamra Port Company to Adani Ports and Special Economic Zone and exceptional charges also include profit of Rs 1,270.21 crore on sale of this non-current investment.
Net sales rose to Rs 36,143.27 crore in the quarter under review from Rs 32,558.61 crore a year ago.
Total expenses went up to Rs 33,704.92 crore from Rs 30,520.02 crore. Tax expenses trebled to
Rs 1,080.41 crore during the quarter compared with Rs 351.39 crore in a year-ago period.
Finance costs shot up to Rs 1,252.37 crore during the quarter under review from Rs 992.44 crore a year-ago.
Tata Steel sold 6.46 million tonnes of steel in the first quarter, up from 6.08 million tonnes a year earlier.
‘Operating performance improved across all geographies as Group EBITDA (earnings before interest, taxes, depreciation and amortisation) for the first quarter ended 30 June, 2014 rose to Rs 4,325 crore from Rs 3,755 crore the year before,’ the statement said.
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