Tata Steel

Tata Steel extending agreement with New Millennium Capital

Tata Steel, the group which is amongst the best dividend paying companies in the stock market, and is constantly on the sentinel for development plans. For the development of iron ore mines in Canada, the company is planning to extend an existing agreement with New Millennium capital.

The current agreement that Tata Steel has with the company, expired on December 31, 2010. According to the current situation, the Ratan Tata owned steel major has a 27 percent stake in ‘New Millennium Capital’ with 80% stake in the Direct Shipping Ore (DSO) project.

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Tata Steel set to raise $5.4 billion loan for its UK unit

One of India’s and world’s largest steel producer, Tata Steel has said that it is in talks with various banks for raising $5.4 billion as loans for its UK units.

There are four main banks that have been approached by the company, said sources close to the development. These four banks are BNP Paribas SA, Credit Agricole CIB, HSBC Holdings and Royal Bank of Scotland Group.

Besides this, there are 11 other banks and it is expected that the loan is to be paid back in five years time.

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PINC Result Review – Tata Steel Ltd., BUY, TP Rs690

Near-term headwinds; Improved fundamentals!

Tata Steel’s consolidated performance turned around in Q1FY11 with operating profit of Rs44.3bn vs. operating loss of Rs0.3bn in Q1FY10, buoyed by better realisation, lower cost (owing to consumption of low cost raw material inventories) and improved sales volume, mainly in Corus. Adjusted PAT improved to Rs18.9bn vis-à-vis loss of Rs19.9bn in Q1FY10.

EBITDA/tone: USD431 for Indian operations vs. USD269 in Q1FY10 and USD381 in Q4FY10; Corus USD79 vs USD94 in Q4FY10.

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Plunge by 42% to Rs 473 crore seen in Tata Steel A 42 pct plunge was forwarded by Tata Steel, (among the top 10 steel companies in the World), in its consolidated profit at Rs 473 crore during the third quarter of FY10 over the corresponding period last year. Furthermore, a decline from Rs 33,199 crore to Rs 26,202 crore was seen in the company’s total income from operations, during the period under review, which occurred mainly because of to a fall in demand in US and Europe.

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