Tata wins NCLT nod to buy Bhushan Steel

Delay in Bhushan Steel acquisition may lead to governance issues- Tata Steel

Delay in Bhushan Steel acquisition may lead to governance issues- Tata Steel

With the company already spending about Rs 4,700 crore in FY18, it plans to spend the balance Rs 39,715 crore over the next three years, according to him.

Tata Steel on Wednesday reported a consolidated net profit of Rs 14,688.02 crore for the fourth quarter ended March 31, 2018, helped by a one-off pension gain as against a net loss of Rs 1,168.02 crore a year earlier.

EBITDA for the quarter improved to Rs 4,823 crore, up by 11.5 per cent year-on-year (y-o-y) as the decline in deliveries was more than offset by improved realisations.

"Tata Steel Europe had a good quarter despite currency headwinds".

Sajjan Jindal-led JSW Steel today said the company has chose to invest an additional Rs 17,600 crore for increasing its steel capacity to 24.7 million tonne per annum (mtpa) by 2020.

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.

He added that the company continues to execute its strategy of expanding footprint in India.

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Tata Steel, whose bid for debt-ridden Bhushan Steel was approved by the NCLT, would implement the resolution plan through its step-down subsidiary Bamnipal Steel Ltd.

The company says is ready for the buy out of Bhushan Steel and is awaiting all regulatory approvals. Tata Steel executive director and chief financial officer Koushik Chatterjee told reporters "In the short term, I think the delay in the process (acquisition) is a concern. We also successfully completed a $2 bn Rights Issue, one of the largest equity issuance in India", he said.

Kaushik said that the company has completed the due diligence process in the Thyssunkrupp deal, adding that, "we are just now working on definitive agreements, and should look at it (completion) in the first half of the year".

The Sajjan Jindal promoted company announced a capital expenditure of Rs 17,600 crore, mainly on cost reduction projects such as coke oven and pellet plants.

The steel maker launched 38 new products in FY18 in its India operations and enriched products now account for 68 per cent deliveries in India while branded products contribute 46 per cent of total revenues.

The shares of the company closed at Rs 622.05 apiece on the BSE, down 0.32 per cent from the previous close.

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