How Tata Steel turned around bankrupt Bhushan Steel
Thanks to the strong financial performance, TSBSL share price has doubled to Rs 103 in the last one month; the once bankrupt firm has a market capitalisation of over Rs 10,000 crore at present
- May 18, 2021,
- Updated May 18, 2021 10:08 PM IST
Erstwhile Bhushan Steel, which was run by Brij Bhushan Singal and his younger son Neeraj Singal, had been accumulating losses and defaulting loans when the company was taken to bankruptcy court in 2017. The lenders and other creditors claimed over Rs 63,000 crore from the company. But Tata Steel, which acquired the company through the insolvency resolution process, has turned around it in just two financial years, despite the economic troubles inflicted by COVID-19.
Tata Steel BSL (new name of Bhushan Steel) recently posted manifold jump in its consolidated net profit at Rs 1,913.73 crore for the fourth quarter ended March 31, 2021, mainly on the account of higher income. It reported a consolidated net profit of Rs 5.93 crore in the year-ago period. The total income increased to Rs 7,348.66 crore in FY21, from Rs 4,288.87 crore in the year-ago period.
Thanks to the strong financial performance, the share price of TSBSL almost doubled to Rs 103 in the last one month, following the result for March quarter and FY21. The once bankrupt firm has a market capitalisation of over Rs 10,000 crore at present.
Erstwhile Bhushan Steel, which was run by Brij Bhushan Singal and his younger son Neeraj Singal, had been accumulating losses and defaulting loans when the company was taken to bankruptcy court in 2017. The lenders and other creditors claimed over Rs 63,000 crore from the company. But Tata Steel, which acquired the company through the insolvency resolution process, has turned around it in just two financial years, despite the economic troubles inflicted by COVID-19.
Tata Steel BSL (new name of Bhushan Steel) recently posted manifold jump in its consolidated net profit at Rs 1,913.73 crore for the fourth quarter ended March 31, 2021, mainly on the account of higher income. It reported a consolidated net profit of Rs 5.93 crore in the year-ago period. The total income increased to Rs 7,348.66 crore in FY21, from Rs 4,288.87 crore in the year-ago period.
Thanks to the strong financial performance, the share price of TSBSL almost doubled to Rs 103 in the last one month, following the result for March quarter and FY21. The once bankrupt firm has a market capitalisation of over Rs 10,000 crore at present.