Tata Steel Group June quarter loss at Rs 2,208 crore

Consolidated Q1 revenue half of previous year

Total Income of the company has almost halved to Rs 23,496.21 crore in the June quarter from from Rs 43,548.86 crore in the quarter ended June 30 2009.

 It is significant to note that the consolidated net loss of Tata Steel for the quarter under review would have been higher by Rs 2,998.86 crore on two counts.  One is the actuarial gains and losses on funds for pension plans of Tata Steel Europe have been accounted in “Reserves and Surplus” in the consolidated financial statements under IFRS principles. Had the company taken the loss in Profit & Loss (P&L) Account, the consolidated losses for the quarter would have gone up by Rs 2,147.09 crore.

Secondly, in accordance to the Indian Accounting Practise, Tata Steel changed its policy for accounting of derivatives effective April 1 this year and has set off the losses from derivatives against Reserves (as opposed to earlier policy of accounthing them in the P&L account).

Had the company not changed the policy, its consolidated net loss would have been higher by Rs 851.77 crore.

At the same time, Tata Steel has also changed the policy regarding forex gain and losses by adjusting the exchange gain to cost of capital assets as against earlier policy of taking it to the P&L account. Had it followed the previous practice the consolidated net loss for the June-quarter would have lower by Rs 291.91 crore.

Meanwhile, at the Annual General Meeting of Tata Steel in Mumbai, Tata Steel Chairman Ratan Tata told shareholders that 100 per cent capacity utilisation of Corus will be achieved by the end of 2010-11.

Announcing a dividend of Rs 16 per share of Tata Steel, he said that the global environment became challenging with the economic turmoil and the fortunes for Corus could witness a turnaround with an improvement in the situation.

“There are signs of revival in the economy. But it is too early to say at this moment if it is sustainable”, he said. He said the steel major is focused on having captive mines for reducing external dependence on iron ore and coal.

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