Tata Steel quarterly net profit increases 22% to Rs 1,488 cr

The results announced on Thursday do not include the consolidated financial performance of the company, which, including Corus, will be announced by the end of August this year, the company said.

The company?s revenues in the first quarter from the steel business grew 38.49% to Rs 5,303.20 crore as against Rs 3,816.69 crore in the same quarter last year. Moreover, there was a significant growth of 162.81% in the company?s ferro alloys and minerals segment during the period. The ferro alloy and mineral segment reported growth in revenue of Rs 838.08 crore against Rs 318.89 crore in Q1FY08. Tata Steel Ltd shares on Thursday were up 3.95% or Rs 24.90 to close at Rs 654.95 on the Bombay Stock Exchange.

Pawan Burde, an analyst with Angel Broking, said, ?Tata Steel results are in line with expectations. Global prices have risen by almost 50% this year and are expected to remain firm in the medium-term. Domestic steel players have taken a hit on their margins due to rising input costs as they have been unable to pass on the same due to government?s intervention, which has prevented steel companies from raising prices in wake of the high inflationary pressures. Tata Steel has, however, been an exception on account of it being the most efficient player owing to the backward integrated nature of its business.?

Tata Steel expects to increase its steel capacity through brownfield and greenfield expansions. Through brownfield expansion, the company increased capacity at its Jamshedpur plant from 5mtpa to 7mtpa in June 2008. The company also plans to set up greenfield plants at Jharkhand and Chhattisgarh with capacities of 12mtpa and 5mtpa, respectively.