Tata Steel swings to profit in first quarter, but lags estimates
Tata Steel Ltd returned to profit in the first quarter of this year after a loss a year ago, helped by the ramp up of its Kalinganagar plant in Indian state of Odisha.
Revenue in the quarter jumped 19 % aided by increased capacity in India and Tata`s restructuring efforts in Europe, Koushik Chatterjee, group executive director (Finance and Corporate), said.
The steelmaker`s net profit came in at Rs 9.21 billion (Rs 921 crore or $144.37 million) in the quarter ended June 30, compared to a loss of Rs 31.83 billion (Rs 3183 crore) a year earlier.
In the June-quarter of last year, Tata Steel registered a loss of Rs 32.96 billion (Rs 3296 crore) related to the sale of its long products business in Britain to Greybull Capital LLP in May 2016.
Analysts on average had expected a net profit of Rs 10.43 billion (Rs 1043 crore), according to Thomson Reuters data.
The company said total steel deliveries in the first quarter were up about 9 %, with domestic deliveries accounting for 47 % of the total.
Ahead of the results, Tata`s shares rose as much as 4.5 % to a six-year high.
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