Cyrus Mistry retained his position as Chairman of Tata Steel despite a lack of unanimity among the members on the issue of backing him. According to sources close to the development, at least three independent directors have opposed his continuation as Chairman.

The directors who may have voted against Mistry include Mallika Srinivasan, Chairman and Chief Executive Officer, Tractors and Farm Equipment; OP Bhatt, former Chairman of SBI; and Andrew M Robb, former board member of Corus plc, which was acquired by Tata Steel. Sources said these directors blocked a move by Nusli Wadia to bring a resolution backing Mistry.

There was no statement issued after the Tata Steel board due to the divisions within the board.

Dismal performance

Meanwhile, Tata Steel reported a consolidated net loss of ₹49 crore in the September quarter against a net profit of ₹5,609 crore in the same period last year, largely due to lower sales realisation and higher inventory.

Total income was down marginally at ₹27,471 crore (₹27,456 crore). The company incurred a loss despite the fact that expenses fell by 4 per cent to ₹25,969 crore (₹26,989 crore). It had registered an inventory of ₹999 crore during the quarter.

On a standalone basis, it recorded a net profit of ₹250 crore in the September quarter against a loss of ₹288 crore in the same period last year. Income was up 10 per cent at ₹11,718 crore (₹10,641 crore).

The company’s steel production in India was up 13 per cent at 2.62 million due to a ramp-up at the newly commissioned plant at Kalinganagar. Earnings before interest, tax, depreciation and amortisation was down 11 per cent at ₹2,000 crore and one-off regulatory costs in mining operations. Ebitda per tonne was ₹7,620.

Gross debt of the company decreased by ₹1,159 crore to ₹84,316 crore as on September 30: it raised ₹1,000 crore through debentures.

Shares of Tata Steel were down 2 per cent at ₹427 on Friday.

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