Tata Steel Net Jumps 179% In Q1

Mumbai, July 22 | Updated: Jul 24 2004, 03:50am hrs
Tata Iron & Steel Company (Tata Steel) has reported a 179 per cent increase in net profit to Rs 745.5 crore for the first quarter ended June 30, 2004 as compared to Rs 267 crore in the corresponding quarter last year. Net sales grew by 40 per cent to Rs 3,164 crore from Rs 2,257 crore last year.

The increase in profit is attributed to the improvement in steel prices. During the quarter under review, realistion per tonne improved by close to 40 per cent to Rs 32,856 as compared to Rs 23,566 in the corresponding quarter last year.

Steel production during the quarter grew by close to three per cent to 9,93,161 tonnes from 9,64,614 tonnes last year. Steel sales leapfrogged marginally to 8,82,750 tonne from 8,79,909 tonne last year.

Meanwhile, at the annual general meeting of the company held here later in the day, Tata Steel chairman Ratan Tata said that it was hedging on its fortune by going across the shores of India, to avoid dependence on a single economy.

To this end, the company was seeking marketing and technological alliances with foreign players.

We are looking at various Russian and East European plants as and when they are available for sale, he said replying to shareholders query.

The company is planning to increase its steel production to 15 million tonne by 2010 through acquisition and not just organic growth in Jamshedpur alone, Mr Tata said.