New Delhi: Tata Steel Wednesday reported a 64.59 per cent decline in its consolidated net profit to Rs 554.56 crore during the March 2024 quarter on lower realisations and certain exceptional items.
It had posted a profit of Rs 1,566.24 crore in the year-ago period, the company said in a regulatory filing.
Total income plunged to Rs 58,863.22 crore from Rs 63,131.08 crore in the January-March period of FY23.
The company’s expenses were at Rs 56,496.88 crore as against Rs 59,918.15 crore a year ago.
Its revenues decreased by 6 per cent due to lower realisations partly offset by higher volumes in India.
The company said exceptional items primarily related to impairment of heavy end assets and restructuring cost relating to the UK business.
The board of the company has recommended a dividend of Rs 3.60 per equity share of face value Re 1 each for FY24.
The board has also approved the issuance of additional debt securities, in one or more tranches, to raise up to Rs 3,000 crore via non convertible debentures (NCDs) on private placement basis.
The board also gave its go-ahead to the proposal to infuse funds of up to $2.11 billion (Rs 17,407.50 crore), by way of subscription to equity shares of T Steel Holdings Pte. Ltd (TSHP), wholly owned foreign subsidiary of the company, in one or more tranches, during FY25.
The funds will be utilised towards repayment of external debt in Tata Steel’s offshore subsidiaries and to support the restructuring cost in Tata Steel UK Limited, wholly owned subsidiary of Tata Steel Ltd.
It further “approved the proposal to convert debt instruments aggregating to $565 million (Rs 4,661.25 crore) held by the company in TSHP into equity shares, during FY2024-25,” the company said.
The company will continue to hold these converted equity shares.
PTI