Tata Steel Q3 net profit soars 21.92%

Tata Steel reported a 21.92 per cent increase in consolidated net profit for the second quarter ended September 30, 2015, at Rs 1,529 crore compared with Rs 1,254 crore in the same period last year.

This performance is despite an exceptional loss of Rs 563.74 crore during the quarter on account of provisions and diminution of assets and credit on account of pension row in Europe as compared with a exceptional gain of Rs 1,145.01 crore in the comparable quarter.

Turnover for the company during the reported quarter declined 18.08 per cent to Rs 29,305 crore compared with Rs 35,777 crore in the second quarter previous fiscal.

“The underlying operating performance of the Tata Steel Group in this quarter has been impacted by weak economic environment, relative currency movements and a surge in imports in key geographies such as the UK, India and Europe,” Tata Steel group executive director (finance and corporate) Koushik Chatterjee said.

“The Indian business has done well operationally but continues to bear the brunt of declining global steel realisations, weak domestic demand, a relatively strong currency and significant regulatory charges especially on our mining activity in Jharkhand,” Chatterjee added.

During the quarter, the company had other income of Rs 2,938.19 crore, including gain of Rs 2,808.29 crore on account of sale of quoted investments.

The South East Asian operations continue to be impacted by rising imports from China.