Tata Steel Q4 net surges 41 per cent
The Hindu Business Line — May 18, 2007

Tata Steel said its fourth quarter net profit rose 40.9 per cent to Rs1,103.5 crore from Rs783 crore a year ago.

Net income from operations rose 21.4 per cent to Rs4,980 crore from Rs4,100.5 crore.

"The net profit increase both for the quarter (and for fiscal 2007) can be attributed equally to higher sales, higher price realisation, and greater cost reduction measures," said Kaushik Chatterjee, chief financial officer of Tata Steel. Higher 'other income', mostly from treasury operations, also helped.

For fiscal 2006-07, the company's net profit rose 20.4 per cent to Rs4,222 crore from Rs3,506 crore in the previous financial year. The net profit margin was constant at 23 per cent.

Though the company contained costs, margins were under pressure from input cost rises, chiefly that of iron ore and freight, said B Muthuraman, managing director, at a press conference here on Thursday. The company continues to look out for acquisitions that will assure it raw material supplies, he said.

Net operating income for the year rose 15.4 per cent to Rs17,552 crore (Rs15,215 crore), while total expenditure rose 14 per cent to Rs10,578 crore. Other income, at Rs433.7 crore (Rs254.8 crore), was 70 per cent higher.

On a consolidated basis (excluding Corus) the company's annual net profit rose 12 per cent to Rs4,177 crore from Rs3,734 crore. Turnover rose 23 per cent to Rs27,437 crore.

On a pro-forma basis, the quarterly consolidated net profit of Tata Steel, including that of Corus (acquired in April this year) would be Rs1,717 crore (Rs1,198 crore), said Muthuraman. The recommended dividend is 155 per cent for the fiscal, including a special dividend of 25 per cent to mark Tata Steel's centenary year.