Tata Steel Q1 consolidated PAT soars six-fold on Corus buy The entry of the Anglo-Dutch steel major Corus into Tata Steel's fold (the former became a subsidiary from April 2, 2007) has sharply boosted the latter's consolidated turnover and net profits for the first quarter of the current fiscal. The subsidiaries contributed a little less than half to the consolidated turnover and hardly anything at all to Tata Steel's profits in fiscal 2006-07.
But the consolidated results filed by the company show that they are now responsible for a 6.4 times improvement in turnover (from Rs 4,198 crore to Rs 31,155 crore) and a 5.2 times growth in adjusted net profits (from Rs 1,222 crore to Rs 6,360 crore) in the first quarter of the current fiscal.
However, the consolidated net profit for the first quarter has been aided by a gain of Rs 4,121 crore. The company has attributed this to savings in pension liabilities for its subsidiary Corus, consequent to an improvement in yields on bonds held by the Corus' various pension funds as investments to meet such obligations. Thus if pension fund gains are excluded, the Corus
acquisition does not appear to have had significant impact on profit performance.
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