Tata Steel on Tuesday reported 90.51 per cent growth in consolidated net profit at Rs 1,139 crore for the quarter (Q1) ended June 30, largely due to significant decline in tax outgo.
Tata Steel had reported net profit of Rs 597.88 crore in the April-June quarter of the 2012-13 fiscal.
The Q1, 2013-14 net sales of the company were however down 3 per cent at Rs 32,550.21 crore due to subdued global steel demand. It had reported net sales of Rs 33,547.73 crore in the Q1, FY'13.
Tata Steel tax outgo declined by nearly 61 per cent to Rs 351.39 crore, compared to Rs 898.63 crore during Q1, 2012-13, Tata Steel said in a filing to the BSE.
The net profit on standalone basis, which is Indian operations of Tata Steel, was Rs 1,356.11 crore, almost the same as was in Q1 FY'13 (Rs 1,356.56 crore). Standalone net sales were up 6.15 per cent growth at Rs 9,363 crore vis-a-vis Rs 8,820.19 crore.
In a separate statement, the company said that the "improvement (in company's net profit) was on the back of robust performance by the Indian operations and improved performance at the European operations".
Tata Steel Managing Director H M Nerurkar said: "The Indian operations delivered a steady performance in a subdued market environment with deliveries growing at an enhanced pace over the comparable period of last year."
He further said that work on the upcoming steel plant in Odisha, first for Tata Steel India outside Jamshedpur, is in full swing. Besides, he added that the South East Asian operations continue to be robust.
During Q1, FY'14, Tata Steel's total steel deliveries rose to 6.08 million tonnes (MT) versus 5.68 MT in Q1 FY'13, the company said, adding that it happened mainly due to volume growth at India operations, where the company has added 2.9 MT new capacity some time back.
Talking about India, the company said that deliveries totalled 2 MT in the quarter compared to 1.59 MT of Q1 FY'13, an increase of 25.8 per cent.
Deliveries at Tata Steel Europe, which contributes more than 50 per cent of operations, declined to 3.14 MT in the last quarter, slightly lower than the 3.21 MT of Q1FY'13, "largely due to soft market demand", the company said.