Tata Steel, the country's oldest steel producer, on Thursday reported a 84.37 percent year-on-year (YoY) drop in net profit at Rs 2,295.2 crore for the January-March quarter of 2018-19.
In the corresponding quarter last year, the company posted a net profit of Rs 14,688 crore.
CNBC-TV18 Polls had predicted a profit of Rs 2,150 crore for the quarter under review.
However, the total consolidated income of the company rose to Rs 42,913.73 crore in January-March 2019, from Rs 33,983.74 crore in the same quarter in the preceding fiscal.
The company's consolidated revenue from operations for the reporting quarter grew to Rs 157,669 crore, up from the Rs 124,110 crore reported last year.
For FY19, consolidated steel production, as well as deliveries, jumped 17 percent YoY to 27.11 million tonne and 26.80 million tonne, respectively. Consolidated steel production and deliveries for 4QFY19 grew 27 percent YoY and 29 percent YoY, respectively.
Consolidated revenues increased 27 percent YoY to Rs 157,669 crore in FY19 and 26 percent YoY to Rs42,424 crore in 4QFY19. Consolidated adjusted EBITDA grew 55 percent YoY to Rs 30,734 crore FY19. 4QFY19 EBITDA increased by 33 percent YoY to Rs 7,814 crore as compared to Rs 5,857 crore in 4QFY18.
The Jamshedpur-based company's gross debt decreased by Rs 8,781 crore during 4QFY19 and it has Rs 5,937 crore in cash and cash equivalents and Rs 9,347 crore in banks.
The steelmaker has recommended a dividend of Rs 13 per ordinary share of Rs 10 each and Rs 3.25 per partly paid on an ordinary share of Rs 10 each for the year ended March 31, 2019. The dividend, if approved by the shareholders, will be paid on and from Tuesday, July 23, 2019.
TV Narendran, chief executive officer and managing director, said, "The proposed merger of Tata Steel BSL with Tata Steel will accelerate operational synergies and simplify our corporate structure. Our 5 MTPA Kalinganagar Phase II expansion will help us to further consolidate our presence in India and strengthen our financial performance."
"We are excited about the recently completed acquisition of the 1 MTPA steel business of Usha Martin which is an important milestone in our plans to grow our long products business. We continue to work closely with the European Commission on seeking approvals for our planned European steel JV with ThyssenKrupp," he added.Shares of Tata Steel settled at Rs 510 apiece, down 2. 89 percent on the BSE.