Tata Steel Ltd was helped to a quarterly profit of Rs14,688 crore ($2.17 billion) by a one-off pensions gain, in contrast with an Rs1,168 crore loss a year earlier.
The Indian steelmaker on Wednesday reported an exceptional gain of Rs11,376 crore in the quarter to the end of March, which included a non-cash gain of Rs14,077 crore relating to the restructuring of its British pension scheme.
Britain’s pensions regulator agreed last year to allow Tata Steel UK to cut pension scheme liabilities, the main stumbling block in Tata’s efforts to merge its European operations with Germany’s Thyssenkrupp.
In the same quarter last year, Tata Steel booked charges of Rs4,069 crore, including curtailment charges relating to the closure of Tata Steel Europe’s pension scheme.
Income from operations in the quarter rose by 2.6% to Rs35,737 crore, the company said in a statement. It also reported a decline of about 5.9% in total steel deliveries for the fourth quarter, while domestic deliveries slipped 5.6% to 3.03 million tonnes.
Tata Steel shares were 0.8% lower ahead of its results on Wednesday.
Source: Live MintPrevious Next