The Hindu Business Line : Tata Steel net up 29% on better realisation of prices

Mumbai, July 30 Tata Steel Ltd has posted a 29 per cent rise in net profit for the quarter ended June 30, thanks to a combination of better realisation in the average price of steel and currency valuation gains on foreign borrowings. Net profits rose from Rs 953.41 crore in the June quarter last year to Rs 1,222.11 crore this year.

Average price realised on sale of steel improved roughly by Rs 5,350 per tonne thereby generating additional revenue of a little over Rs 550 crore, which is more than the increase in net profits.

A company statement said it has gained Rs 686.43 crore on account of unrealised exchange differences on foreign currency borrowings and a realised loss of Rs 133.41 crore on foreign currency deposits, mainly in relation to the acquisition of Corus, giving rise to a net gain of Rs 553.02 crore, the statement added.

Production drops

Net income for the quarter rose 7.9 per cent to Rs 4,197.58 crore, against Rs 3,889.45 crore logged for the same period last year.

The consolidated results, including for Corus will be published by end August, a statement from Mr Ratan Tata, Chairman, Tata Steel Ltd, said.

Total steel production for the quarter dropped marginally to 10,64,832 tonnes against 11,08,514 tonnes, sales were also down to 10,40,963 tonnes against 11,15,066 tonnes. The export turnover was lower at Rs 362.01 crore against Rs 456.94 crore.

Further, 2,85,00,000 ordinary shares of Rs 10 each, at a premium of Rs 474.27 per share, have been allotted to Tata Sons Ltd on April 17 on Tata Sons having exercised its option on warrants.

Tata Steel to pay $7.4 billion for Corus buy: Page 2

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