Aided by improvement in sales volume and higher prices of steel, Tata Steel has turned the corner by posting a consolidated net profit of Rs 231.40 crore for the December quarter as against a consolidated net loss of Rs 2,747.7 crore in the corresponding quarter of the previous fiscal. The board of Tata Steel also elected N Chandrasekaran, Tata Sons chairman-designate, as the chairman of the steel company.
After the exit of Cyrus Mistry, former State Bank of India chairman O P Bhatt was temporary chairman of the company. Tata Motors had recently appointed Chandrasekaran as the chairman.
Chandrasekaran said: “Tata Steel is an iconic company that has stood tall for over a century. The company has for long provided thought leadership in areas of sustainable business, ethics and stakeholder management. It is built on a unique culture of thinking about society and not just the business. I feel greatly honoured to be chosen as the chairman and I accept this responsibility with a deep sense of humility.”
Despite demonetisation, the consolidated gross sales increased to Rs 29,279 crore, from Rs 25,662.3 crore in the year-ago period. “Tata Steel recorded strong sales this quarter as the strength of our franchise helped us counter headwinds due to demonetisation. While the broader market was affected by lower rural sales and adverse consumer sentiment. We were able to increase overall volumes by 14 per cent sequentially and register strong growth across all our target customer segments,” said.
T V Narendran, managing director (MD), Tata Steel India and South East Asia.
“Our third quarter Ebitda result was significantly better than the loss recorded in the previous year, partly due to better market conditions and the weakness of the pound relative to the euro,” said Hans Fischer, MD and chief executive officer of Tata Steel in Europe. “Consolidated revenues (are) up by 7 per cent sequentially and 14 per cent year-on-year. The growth is largely driven by strong performance from Indian operations,” the company said, adding.
According to Koushik Chatterjee, group executive director (finance and corporate), the strategic initiatives in the UK on the pensions continue to be a priority for the company. “We welcome the unions’ recommendation to its members to support the ballot process that is currently on to close the BSPS (British Steel Pension Scheme) to future accruals.”
Announcing other changes in the Board, Tata Steel said its Board of Directors also appointed Peter Blauwhoff as an additional (independent) director. His appointment is effective immediately.