Tata Steel has reported a consolidated net profit of ₹14,688 crore in the March quarter against a net loss of ₹1,168 crore logged in the same period last year. The profit was boosted by one-time gain of ₹14,077 crore.
Consolidated total revenues increased 2.34 per cent to ₹32,132.30 crore (₹35,304.89 crore).
The company has announced a dividend of ₹10 on ordinary share and ₹2.50 per partly-paid ordinary share.
UK pension scheme
Explaining the one-time gain, the company said the entire process for the UK pension restructuring is now complete and the new scheme has a non-cash £2.2 billion accounting surplus under IAS19 (International Accounting Standard).
Out of this, a non-cash gain of £1.64 billion (₹14,077 crore) has been treated as the exceptional gain during the quarter.
The surplus will continue to support the pension scheme, allowing it to run its required low-risk investment strategy protecting its members.
This is an optimal and sustainable outcome for pensioners, current employees and the UK business.
The acquisition of Corus Group between April 2007 until September 2017, £1.7 billion of charges were taken through the books of Tata Steel UK either through the profit and loss account or other comprehensive income in relation to the old British Steel Pension Scheme.
In addition, in the September 2017 quarter, when the BSPS was separated from Tata Steel UK by way of a Regulated Apportionment Arrangement, a £554-million cash payment and a 33 per cent equity stake of the company was transferred into the scheme, it said.
The binding joint venture agreement with Thyssenkrupp is expected to be signed in the first quarter of this fiscal.
The company has recognised an exceptional charge of ₹1,607 crore including charge of ₹1,484 crore on account of net provision recognised in respect of certain demands and claims from regulatory authorities relating to mining operations
T V Narendran, Managing Director, Tata Steel, said the Indian operations delivered volume growth better than the market on the back of the ramp-up at Kalinganagar plant.
“Kaliganagar expansion will take our capacity from 13 mtpa to 18 mtpa of crude steel. I am also happy to share that NCLT has given its approval on our resolution plan for Bhushan Steel. We have also received the CCI approval for this transaction,” he said.