Tata Steel net profit jumps 75 pc to Rs 918.57 cr in April-June

Tata Steel, a major steel company, reported a 75% increase in its consolidated net profit to Rs 918.57 crore in the June 2024 quarter, attributed to a reduction in expenses. This is compared to a net profit of Rs 524.85 crore during the same period in the previous fiscal year.

The total income for the reporting period decreased to Rs 55,031.30 crore from Rs 60,666.48 crore a year ago. During this quarter, the company’s expenses decreased to Rs 52,389.06 crore from Rs 58,553.25 crore in the same period a year ago. Additionally, the company’s board approved the acquisition of a 26% stake in TP Parivart Ltd.

As part of this plan, the company will invest up to Rs 35 crore in one or more tranches and execute a Share Purchase & Shareholders’ Agreement (SPSA) with Tata Power Renewable Energy Ltd (TPREL) and its wholly-owned subsidiary TP Parivart Ltd (TPPL) to acquire and hold a 26% equity stake in TPPL.

Furthermore, the board approved the proposal to invest funds of up to Rs 6,000 crore, in one or more tranches, by subscribing to equity shares of Neelachal Ispat Nigam Limited (NINL), a subsidiary of the company, during the fiscal year 2024-25. Finally, the board has approved the scheme of amalgamation among Rujuvalika Investments Limited, a wholly-owned subsidiary of the company, Tata Steel, and their respective shareholders.