Tata Steel net up 29 per cent on better realisation of prices
The Hindu Business Line — July 31, 2007

Tata Steel 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 Rs953.41 crore in the June quarter last year to Rs1,222.11 crore this year.

Average price realised on sale of steel improved roughly by Rs5,350 per tonne thereby generating additional revenue of a little over Rs550 crore, which is more than the increase in net profits.

A company statement said it has gained Rs686.43 crore on account of unrealised exchange differences on foreign currency borrowings and a realised loss of Rs133.41 crore on foreign currency deposits, mainly in relation to the acquisition of Corus, giving rise to a net gain of Rs553.02 crore, the statement added.

Production drops
Net income for the quarter rose 7.9 per cent to Rs4,197.58 crore, against Rs3,889.45 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, 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 Rs362.01 crore against Rs456.94 crore.

Further, 2,85,00,000 ordinary shares of Rs10 each, at a premium of Rs474.27 per share, have been allotted to Tata Sons Ltd on April 17 on Tata Sons having exercised its option on warrants.