"Looking at the domestic demand growth, we see a shortage of steel if we dont expand in the next two years", JSW Steel joint managing director and group chief financial officer Seshagiri Rao told reporters here while announcing nearly two-fold rise in consolidated net profit to Rs 2,879 crore in the March quarter, against Rs 1,008 crore in the year-ago quarter.
The total consolidated income of the company increased to Rs 36,407.19 crore in January-March 2018, from Rs 35,457.06 crore in the same quarter of FY17. Sales rose 13.96% to Rs 904.18 crore in the quarter ended March 2018 as against Rs 793.40 crore during the previous quarter ended March 2017. ETNow poll had predicted a net profit of Rs 2,323 crore.
Tata Steel Ltd. was helped to a quarterly profit of ₹146.88 billion rupees by a one-off pensions gain, in contrast with a ₹11.68 billion loss a year earlier. Revenues went up to Rs 20,817 crore from Rs 17,917 crore a year ago.
T V Narendran, CEO & MD of the company, said: "Tata Steel performance has been robust in FY18 driven by our strong execution strategy and supported by favourable global demand-supply balance".
The gain in profits was despite lower production the company had witnessed of 6.26 million tonne (mt) during Q4 as compared to 6.40 mt a year ago. The plan is now expected to be enhanced by Rs 17,600 crore to implement a set of new projects including the power plants, a 8 MTPA pellet plant and 1.5 MTPA coke oven plant at its Vijaynagar project apart from a new coke oven plant of 1.5 MTPA capacity at Dolvi in Maharashtra.
He said the company is awaiting NCLT approval for Monnet Ispat and Energy (MIEL) acquisition.
"We also successfully completed a $2bn Rights Issue, one of the largest equity issuance in India", he said.The shares of the company closed at Rs 622.05 apiece on the BSE, down 0.32% from the previous close.