The loss was largely caused by a Rs781 crore ($147 million) decline in core earnings from the European operations of Tata Steel as the demand from the continent—the largest market for Tata Steel—slumped. A jump in raw material costs by 20.59% also contributed to the loss
Mumbai: Tata Steel , the world’s seventh largest steel maker, on Thursday reported a consolidated net loss of Rs602.67 crore for the October-December quarter, its first quarterly loss in more than two years, reports PTI.
It was largely caused by a Rs781 crore ($147 million) loss in core earnings from the European operations of Tata Steel as the demand from the continent—the largest market for the firm—slumped. A jump in raw material costs by 20.59% also contributed to the loss.
The company had reported a net profit of Rs1,003.02 crore in the Q3 of 2010-11. It said that it is expecting muted but stable demand in 2012 in European markets.
“Through our Step Up and Save initiative, we are accelerating cash conservation in expectation of muted but stable demand in our core markets in 2012,” Tata Steel Europe MD & CEO Dr Karl-Ulrich Kohler said in a statement.
He added that the October-December quarter “marked the height of the cyclical cost-price squeeze”.
Tata Steel Europe (formerly Corus) reported a loss of Rs781 crore ($147 million) in its core earnings (EBITDA) during the quarter, the statement said, adding that it was mainly due to mark-to-markets provisions on stock.
During the same period of 2010-11, Tata Steel Europe had reported a positive EBITDA (earnings before income, tax, depreciation and amortisation) of Rs392 crore ($74 million).
Tata Steel’s total expenses went up by 22% to Rs32,549.77 crore, while the raw material costs rose by 20.59% to Rs12,618.69 crore in the Q3.
On a consolidated basis, the net sales were up by 15.23% to Rs 32,964.15 crore during the quarter over Rs28,606.15 crore of the October-December quarter of FY10-11.
The consolidated results of the Tata Group company includes its operations in Europe and South-East Asia.
On a standalone basis, company’s net profit declined by a little over 6% to Rs1,421.26 crore during the October-December quarter, while the standalone net sales were up 13.38% to Rs8,304.58 crore.
The statement added that Tata Steel is looking to commission 2.9 million tonnes per annum new capacity at its existing plant in Jamshedpur during the ongoing quarter.
Commenting on the results, the company’s managing director HM Nerurkar said, “Company-wide cost saving measures benefited margins in an otherwise difficult market. We expect steel demand to improve on expectations of the Reserve Bank of India (RBI) relaxing monetary policy to aid growth and investment.”
Mr Nerurkar added that Indian operations of the company delivered steady performance during the last quarter, with flat product volumes increasing 3% year-on-year.
However, the long products volume of the company dropped marginally due to planned shutdowns of the Jamshedpur plant, he said.
Talking about the Tata Steel’s South-East Asian operations, Mr Nerurkar said that “an improvement in operating performance, coupled with a number of new marketing initiatives, should increase profitability”.
During the quarter, company’s steel deliveries fell slightly to 5.84 million tonnes from 5.9 million tonnes in Q3 of FY10-11.
However, the net debt of the company has increased to Rs50,528 crore ($9.52 billion) as on 31 December 2011 compared to Rs46,627 crore ($$8.79 billion) debt reported at the end of March 2011.
The TDSAT said that the dispute is before a city (Bangalore) court, which had ordered RCom not to interfere with the possession of its warehouse where all the materials and data of CAFs are stored
New Delhi: Providing relief to ADAG group firm Reliance Communications (RCom), the Telecom Dispute Settlement and Appellate Tribunal (TDSAT) has stayed the penalty imposed on it by the Department of Telecommunications (DoT) for alleged violation of guidelines on subscriber identity, reports PTI.
Passing an interim order, the tribunal observed that RCom had outsourced its Customer Application Forms (CAFs) related work to an agency and now it has dispute with the firm.
The TDSAT said that the dispute is before a city (Bangalore) court, which had ordered RCom not to interfere with the possession of its warehouse where all the materials and data of CAFs are stored.
“We are satisfied that prima facie the petitioner could not comply with its obligations for the months of July and August 2011 owing to the aforementioned order of injunction (by city court),” said the TDSAT bench headed by its chairman justice SB Sinha.
The Telecom Enforcement, Resource and Monitoring (TERM) cells of DoT had found 3,505 violations of subscribers’ identity in July and August of 2011 in Madhya Pradesh circle.
According to TERM cell, RCom had failed to supply CAFs.
It had also failed to comply with the essential requirement of subscriber verification like photo on CAF, ID proof and address proof.
Following it, the government had passed two orders on 9th November and 17th November and imposed penalty on RCom.
This was challenged by the company before the TDSAT contending that it was impossible for them to comply with the DoT order.
The company further contended that it has already challenged lower court’s order before the Karnataka High Court, which has directed to expedite the hearing.
Agreeing with the submissions of RCom, the tribunal said, “Petitioner (RCom) shall also suffer substantial injury, if it is directed to deposit the amount of penalty imposed on it in the aforementioned facts and circumstances of the case.”
The tribunal further said that issues on such “equities between the parties moreover can also be adjusted in future”.
However, it further said if the city court order is changed, then RCom “must produce all the relevant data before the concerned Term Cell within two weeks from the retrieval”.
The Standing Committee on Finance, headed by former finance minister and senior BJP leader Yashwant Sinha, is of the opinion that the income tax exemption limit should be Rs3 lakh while the DTC Bill has the provision of raising the limit to Rs2 lakh
New Delhi: A key Parliamentary committee on Friday is expected to adopt the crucial report on Direct Taxes Code (DTC) Bill and recommend raising the income tax (I-T) exemption limit to Rs3 lakh from Rs1.8 lakh at present, reports PTI.
The Standing Committee on Finance, headed by former finance minister and senior BJP leader Yashwant Sinha, will discuss the final draft of the report on the DTC Bill during its day-long meeting on Friday.
The committee is of the opinion that the income tax exemption limit should be Rs3 lakh. The Bill has the provision of raising the limit to Rs2 lakh.
The committee, according to sources, wants the government to raise the income tax exemption limit in view of the near double-digit inflation which has eroded purchasing power of rupee.
Finance minister Pranab Mukherjee had tabled the DTC Bill in Lok Sabha in August which was referred to the Standing Committee for scrutiny.
The draft report, prepared by the committee, has suggested categorisation of the home and commercial property for the purpose of income tax. The income from these two sources should accorded different tax treatment.
It wants the government to incorporate provisions to prevent misuse of the facilities and tax relief provided to People of Indian Origin (PIOs).
The DTC, which seeks to modernise the direct taxation system, will replace the Income Tax Act, 1961.
Although the government is unlikely to introduce the DTC from 1 April 2012, as planned earlier, it may incorporate some of the provisions of the proposed law in the Budget for 2012-13, to be unveiled on 16th March.