Steelmaker Tata Steel net profit grew more than three-fold in second quarter, the company said on Tuesday, beating market estimates, buoyed by strong domestic growth. Net profit came in at Rs 3,116 crore ($428.79 million) in its fiscal second quarter ended September 30 from Rs 1,018 crore a year earlier, compared with an analysts estimate of Rs 2,247 crore, according to IBES data from Refinitiv. The Mumbai-based company posted a rise of 15 per cent in total steel deliveries in the quarter, of which India deliveries accounted for 58 per cent.
"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 per cent to Rs 43,544 crore.
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)
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