Tata Steel returns to profit on one-off gain

Tata Steel returns to profit on one-off gain

India's JSW Steel posted record quarterly net profit on Wednesday, almost tripling from past year, largely beating market estimates thanks to higher commodity prices and spreads.

The overall estimated capex plan of Rs 26,815 crore announced a year ago is expected to be enhanced by Rs 17,600 crore to implement new projects, Rao said, adding, "Overall, the company is now implementing a cumulative capex pipeline of Rs 44,415 crore by March 2020". ETNow poll had predicted a net profit of Rs 2,323 crore.

The company recorded an exceptional charge of Rs 11,376 crore in the fourth quarter of fiscal 2018, which included a non-cash gain of Rs 14,077 crore on account of the restructuring of its United Kingdom pension scheme.

The total expenses of the company stood at Rs 32,626.42 crore during the quarter under review as against Rs 31,132.02 crore in the year-ago period. "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".

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

With the company already spending about Rs 4,700 crore in FY18, it plans to spend the balance Rs 39,715 crore over the next three years, according to him. The plan is now expected to be enhanced by Rs 17,600 crore to implement a set of new projects including the power plants, a 8 MTPA pellet plant and 1.5 MTPA coke oven plant at its Vijaynagar project apart from a new coke oven plant of 1.5 MTPA capacity at Dolvi in Maharashtra.

The company says is ready for the buy out of Bhushan Steel and is awaiting all regulatory approvals.

Tata Steel shares were 0.8 percent lower ahead of its results on Wednesday.