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Tata Steel Q4 loss narrows to Rs 1,168 crore

LiveMint logoLiveMint 16-05-2017 Kalpana Pathak

Mumbai : Tata Steel Ltd on Tuesday said it has narrowed its net loss in the fourth quarter on the back of non cash pension curtailment charges.

The steel maker reported a consolidated net loss of Rs1,168 crore in the quarter ended 31 March, compared with a net loss of Rs3,042 crore a year ago. The steelmaker’s revenue rose 30.42% to Rs 35,305 crore from Rs 27,071 crore a year ago.

Twelve analysts polled by Bloomberg expected Tata Steel to report a consolidated net profit of Rs 988.40 crore; 14 analysts expected revenue to come in at Rs31,618.40 crore.

Revenue from India business for the company dropped to Rs 17,113.13 crore during the quarter. Revenue from its Europe business came in at Rs 15,243.52 crore.

Steel deliveries during the quarter were 22% higher on a sequential basis leading to 25% uplift in revenue. Tata Steel’s net debt came in at Rs 77518 crore.

“Indian steel players continue to have better pricing power and profitability, supported by the strong regulatory support in the domestic market. This is also apparent in the comparison of the gross profit of the Indian steel industry players versus that of their Chinese counterparts, which clearly highlights that margins for Indian steel players have been much more resilient with reduced volatility,” said Deutsche Bank in a report dated 26 April.

Deutsche Bank expects the utilization rate of the Indian steel industry to rise to a seven-year high of 82.4% in FY18, supported by rising exports.

On 3 May, the cabinet cleared a policy for the domestic steel sector which plans to treble India’s steel production capacity by 2030 and help the country meet its steel requirements.

Also, the country’s emphasis on infrastructure-led growth will support the demand growth of steel.

Ahead of the fourth quarter earnings, Tata Steel’s shares ended at Rs457, up 0.27%, on the BSE while the benchmark Sensex ended at 30,528 points, up 0.86%.

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