Lower corporate tax aids Tata Steel net profit to grow by 5.97% – Livemint, Livemint.com

MUMBAI:Tata Steel, the country’s largest private steel maker, reported net profit of Rs3, 302 crore in the September 2019 quarter, a rise of 5. 97% year-on-year backed by one-time gains and a favorable tax regime.

The company had reported net profit of Rs3, 116 crore in the year-ago period.

In the second quarter consolidated revenue from operations dropped 15. 45% at Rs 34, (crore from Rs) , 897 crore for the same quarter last year.

During the quarter, the company had a favorable tax impact of Rs4, 233 crore, of which Rs2, 425 crore was on adoption of the new corporate tax rate byTata SteelStandalone and some subsidiaries in India and Rs1, 808 crore was on account of recognition / reversal of deferred tax assets and liabilities in offshore subsidiaries.

The company reported standalone net profit of Rs3, 400 crore, 1. 25% higher than the Rs3, 358 crore it reported last year. “In India, ndia steel production remained flat on Quarter on Quarter basis at 4. 50 mn tons in 2QFY 20 as the sharp slowdown in the automotive sector, particularly in the commercial vehicle segment, “the company said in a press release.

The company reported production of 6. 95 million tonnes (mt) in the quarter, with India accounting for 4.5 mt, higher than the 6. (MT and 4.) mt, respectively, reported in the same period last year. EBITDA in its India business fell 45. 97% to Rs3, 817 crore in the quarter, from Rs7, 065 crore in Q2FY 19. EBITDA / tonne of steel fell to Rs 9, 238 from Rs 16, 368 in the quarter, while for the consolidated figures crashed from Rs 12, 713 to Rs6, 156 crore.

TV Narendran, CEO & MD, Tata Steel, said: “The business environment in India and other geographies continued to be challenging and weighed heavily on steel prices. Tata Steel worked closely with customers across business segments to drive sales and maintain volumes. We are focused on driving productivity improvements across our various operations as well as the supply chain to reduce costs and minimize the impact on margins. We hope the end of monsoon season and the onset of festive demand leads to a pick-up in overall consumption and the steel demand. “

“ Our acquisitions continue to stabilize and improve on Our Kalinganagar Phase 2 expansion program is progressing well and we are prioritizing the Pellet plant for cost reductionand the CRM plant for value addition.We are also re-organizing our India footprint in four verticals to drive scale, synergies and simplification which will create value for our stakeholders, “he added.