India's Tata Steel Ltd. [500470.BY] reported a net loss Tuesday in the January-to-March quarter as it was hit by expenses from its closure of a pension program for employees in the U.K.
The company, part of India's largest conglomerate, reported a consolidated net loss of 11.68 billion rupees ($182 million) in the three months ended March 31, the company said. It had a loss of 30.42 billion rupees a year earlier.
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A consensus of analysts by Thomson Reuters had predicted net profit of 9.07 billion rupees.
The company incurred a one-time restructuring charge of 36.14 billion rupees.
The steelmaker in March signed an agreement with trade unions at its U.K. plants to cut workers' pension benefits. It hopes to start a new pension program soon.
The company is in the process of consolidating its European operations that comprise about two-thirds of its steel output.
Revenue rose 29.5% to 348.33 billion rupees from 269 billion rupees a year earlier.
Officials say demand for steel in India is set to grow thanks to new building projects.
"Increasing emphasis for domestically manufactured steel in government projects coupled with renewed thrust on infrastructure, affordable housing and tax reforms are expected to be supportive for demand and margins," T. V. Narendran, managing director of Tata Steel in India and Southeast Asia said.
On Tuesday, shares of Tata Steel ended up 0.27% at 457.00 rupees ahead of the results.
Write to Vibhuti Agarwal at email@example.com
(END) Dow Jones Newswires
May 16, 2017 10:23 ET (14:23 GMT)