Tata Steel beat street estimates by posting a multi-fold increase in its April-June quarter at Rs 5,346 crore, as against 1,825 crore Y-o-Y, boosted by gains from selling its stake in Riversdale Mining and a settlement won over a breach of contract at unit Teesside cast products.
Excluding a one-time gain of Rs 2,880 crore from the company's sale of its stake in Australian coal miner Riversdale to Rio Tinto , Tata Steel reported a profit of Rs 2,470 crore.
Consolidated revenues of the world’s seventh largest steel maker rose 21.4% at Rs 33,000 crore as against Rs 27,194 crore due to higher average realisations and volumes. Group deliveries of 6.1 million tonnes in Q1 FY’12 were 3.1% higher Y-o-Y.
However, EBITDA margin showed a dismal growth at 13.5% as against 16.3% Y-o-Y.
Tata Steel sold its entire stake in Australia’s Riversdale Mining to Rio Tinto Group for $1.1 billion, after doubling its value in less than four years. It also received $130 million as compensation from buyers that walked out of a 10-year contract at Teesside.
Shares in Tata Steel, valued at about $10 billion, have fallen nearly 29% so far in 2011, compared with a nearly 17%t fall in India's benchmark index.
Meanwhile, shares of the company declines 0.58% at Rs 482 on the Bombay Stock Exchange at 14.39 hours.
Input costs at the Mumbai-based company rose after it paid more for iron ore and coking coal for its European business. Tata Steel Europe, acquired in 2007, is completely dependent on outside sources for the steelmaking raw materials.
The company’s debt stood at Rs 40,824 crore as against Rs 46,627 crore Q-o-Q.
Source: www.moneycontrol.com
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DENIP Consultants Pvt Ltd
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