Moneycontrol Bureau
Steel maker Tata Steel has reported a 36.8 percent jump in consolidated net profit at Rs 1,254 crore for the July-September quarter led by income from land sale in Mumbai. Profit in the year-ago period was Rs 916.8 crore.
The company earned an exceptional gain of Rs 1,145 crore on account of completion of sale of a land at Borivali, Mumbai. If this exceptional income removes from profit, then earnings missed street expectations on every front. In Q2FY14, there was a deferred tax credit of Rs 390.02 crore.
Profit was expected at Rs Rs 593 crore on revenue of Rs 35,990 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Consolidated total income from operations fell by 2.4 percent to Rs 35,777.11 crore in the quarter ended September 2014 compared to Rs 36,644.9 crore in same quarter last year.
Operating profit (earnings before interest, tax, depreciation and amortisation) slipped by 1.7 percent on yearly basis to Rs 3,643 crore and margin expanded by 10 basis points to 10.2 percent in the quarter gone by, which both were lower than analysts' expectations of Rs 4,057 crore and 11.3 percent, respectively.
Indian business revenue grew by 8.7 percent year-on-year to Rs 10,785 crore during the quarter. Operating profit jumped 5.3 percent to Rs 3,094 crore but margin declined 90 basis points to 28.7 percent during the same period.
The company said its Indian operations reported stable earnings despite weak monsoon, adding deliveries to high-end segment rose by 38 percent and sales of automotive & special products increased by 30 percent.
Steel deliverables increased to 6.50 million tonnes during the quarter from 6.48 million tonnes in same quarter last year.
SE Asia business EBITDA loss stood at Rs 281 crore as against EBITDA of Rs 129 crore while Europe EBITDA climbed 67.7 percent to Rs 929 crore year-on-year.
In South East Asia, deliveries increased at NatSteel over the last year while declining in Thailand was due to continued political uncertainty, said the company in its filing, adding the South East Asian operations were under pressure due to a surge in low priced imports and a decline in the rebar–scrap spread.
Tata Steel further said the European operations maintained the level of year-on-year improvement in financial performance established in the first quarter. "Production and deliveries were higher than in the first quarter, despite extended summer shutdowns," it added.
Consolidated other income surged 58 percent to Rs 321.52 crore in the quarter ended September 2014 from Rs 203.4 crore in same quarter last year while finance cost has gone up by 15.6 percent to Rs 1,232.8 crore and tax expenses increased by a whopping 162.7 percent to Rs 1,174.77 crore during the same period.
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