Tata Steel consolidated Q3 net profit rises 112%

Tata Steel consolidated Q3 net profit rises 112%

 Tata Steel Managing Director H M Nerurkar briefing reporters on company’s financials in Mumbai on TuesdayThe consolidated total income of India’s largest integrated steel maker in the private sector - also included Tata Steel Europe - has moved up from Rs 26,611.93 crore in Q3, the previous year to Rs 28,985.12 crore in Q3 2010.

Briefing media here, Tata Steel Managing Director H M Nerurkar said: “The performance of the Indian operations in the third quarter, in spite of inflationary concerns, continued to be robust on the back of improved product mix and efficiency enhancement measures.”  
He also said that the expansion at Jamshedpur plant is expected to provide an impetus to future earnings.

Tata Steel Europe MD & CEO Karl-Ulrich Kohler said, “Higher raw materials costs and seasonal factors adversely affected our December quarter... We have rebranded and refinanced our European operations and are introducing a new customer-centric organisational structure.”

Analysts have ascribed the rise in net profits in Q3 due to jump in demand for cars in the country.

In the notes accompanying the results, Tata Steel said had the company recognised changes in actuarial valuations of pension plans of Tata Steel Europe (formerly Corus UK) in the profit and loss account, the consolidated profit would have been higher by Rs 927.50 crore for the quarter.

Standalone result

Standalone results-wise, Tata Steel posted a growth of 26.99 per cent in the net profit for the quarter ended December 31, 2010 to Rs 1,513.46 crore as compared with Rs 1,191.75 crore for the comparable quarter of the previous fiscal.

In Q3, the total income has increased to Rs 7,408.66 crore against Rs 6,638.44 crore.
For nine-months period ending December 31, 2010, Tata Steel posted a net profit of Rs 5,157.98 crore as against Rs 2,884.52 crore in the comparable period of the previous fiscal, which is an increase of 79 per cent.

Total income of the company in the first nine months rose to Rs 21,055.58 crore as compared with Rs 17,682.54 crore.

Giving a macro perspective, Nerurkar said the country’s crude steel production rose more than 6 per cent in 2010, but India remained a net importer of steel, demonstrating the market potential for domestic steelmakers. The outlook for the domestic steel industry this year is positive due to robust growth in infrastructure, automotive and real estate.