Tata Steel's Q1 net up 28% at Rs 1,222 cr

The world's sixth largest steel manufacturer Tata Steel on Monday posted 28.18 per cent increase in net profit at Rs 1,222.11 crore for the quarter ended June 30 compared to Rs 953.41 crore for the corresponding quarter last year.

Total income (net of excise) of the company increased 9.21 per cent to Rs 4,343.70 crore for the quarter ended June 30, from Rs 3,977.38 crore a year ago, Tata Steel informed the Bombay Stock Exchange (BSE).

Shares of the company were trading at Rs 645, down 1.01 per cent on the BSE.

Tata Steel hums a new tune on Corus

MUMBAI: Tata Steel said on Monday that it will increase the size of its contribution to the purchase of Corus by about $800 million to $7.4 billion in order to cover some extra costs and take on the working capital of the Anglo-Dutch steel maker.

Mumbai-based Tata Steel, which became the world’s fifth-biggest steel company following the Corus purchase, said it will increase the size of its proposed convertible preference share issue to about Rs 6,000 crore from the earlier Rs 4,350 crore. It will raise the remaining amount through a GDR or an ADS.

Tata Steel announced the acquisition of Corus in April for a net acquisition value of about $12.9 billion. This was to be funded by Tata Steel UK’s debt of about $6.14 billion, and equity contributions from Tata Steel India and Tata Steel, Asia, a 100% subsidiary of the Indian company.

But the acquisition amount of $12.9 billion referred to the value of what was being paid for and did not include the continuing debt (working capital) of Corus. After the acquisition, the enterprise value, including all the debt and the costs, is estimated at about $13.7 billion.

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