Tata Steel said on Wednesday that consolidated net profit surged 75 per cent to Rs 960 crore for the three months ended June of the current financial year. It has increased from Rs 524.8 crore during the same quarter previous fiscal. However, revenue from operations for Q1 fell 8 per cent to Rs 54,771 crore from Rs 59,490 crore year-on-year.
The stock of Tata Steel ended 0.79% higher at Rs 165.35 apiece, against the benchmark BSE Sensex's marginal 0.35% rise.
The results were declared after market hours.
During the recent annual general meeting of Tata Steel, Tata Group chairman N. Chandrasekaran had said that the company would continue to spend around Rs 10,000 crore every year on capital expenditure. This investment would also help increase production capacity to 40 million tonnes per annum by 2030, he said. Chandrasekaran said the Kalinganagar plant would be expanded from its current 3 mtpa to 8 mtpa, with another phase increasing capacity by a further 5 mtpa to 13 mtpa. In addition to this, the company plans to expand the recently acquired subsidiary NINL from 1 mtpa to 5.5 mtpa in the coming years.
Chandrasekaran also pointed to the modernization underway in Tata Steel's operations abroad. The second blast furnace is likely to shut down by September in the UK, and these are planned to be replaced by electric-arc furnaces as part of the £1.25 billion investments being made in tie-up with the UK government. These talks were not affected by recent political changes in the UK. However, Tata Steel's UK operations have been mired in heavy losses of late.
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