November 13, 2018 / 1:21 PM / 4 months ago

Tata Steel reports jump in second-quarter profit on strong India performance

(Reuters) - Indian steelmaker Tata Steel Ltd’s net profit grew more than three-fold in second quarter, the company said on Tuesday, beating market estimates, buoyed by strong domestic growth.

A man walks past a screen displaying Tata Steel logo before the start of a news conference in Mumbai, May 25, 2016. REUTERS/Danish Siddiqui/Files

Net profit came in at 31.16 billion rupees ($428.79 million)in its fiscal second quarter ended Sept. 30 from 10.18 billion rupees a year earlier, compared with an analysts estimate of 22.47 billion rupees, according to IBES data from Refinitiv.

The Mumbai-based company posted a rise of 15 percent in total steel deliveries in the quarter, of which India deliveries accounted for 58 percent.

“While we are positive on steel demand outlook especially in India, the risk of trade wars and increasing imports remains a concern,” Chief Executive Officer T V Narendran said in a statement.

Tata Steel India deliveries, which includes Tata Steel’s standalone operations and Bhushan Steel , stood at 4.32 million tonnes. Total revenue from operations rose 34.1 percent to 435.44 billion rupees.

Tata Steel also remained optimistic about its joint venture with Germany’s Thyssenkrupp AG, which they signed after more than two years of negotiation.

“We are making good progress on the TSE (Tata Steel Europe) ThyssenKrupp JV,” Narendran said.

Last month, the European Commission said it was investigating whether a planned joint venture between the Indian steelmaker and ThyssenKrupp could reduce competition in the high-end steel sector.

The completion of the deal is expected either in the fourth quarter of this year or in the first quarter of 2019, depending on antitrust talks with the European Commission.

($1 = 72.6700 Indian rupees)

Reporting by Krishna V Kurup in Bengaluru, editing by Louise Heavens

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