Tata Steel Q1 net zooms three fold to Rs 5,347 cr

Tata Steel today reported nearly three-fold jump in consolidated net profit at Rs 5,347 crore for the quarter ended June 30, buoyed by mainly one-time gain after sale of stakes in Australian mining firm Riversdale and Tata Refractories.

The company had reported a net profit of Rs 1,825 crore during the corresponding quarter of last fiscal.

Net sales of the company also rose by 22% to Rs 32,840 crore during the quarter under review, compared to Rs 27,010.06 crore, the company said in a filing to the Bombay Stock Exchange.

Shares of the company were quoted at Rs 480 apiece on the Bombay Stock Exchange at 1450 hrs, down 0.97% from the previous close.

It added that in the April-June quarter, the company realised Rs 4,942 crore (AUD 1,060 million) by selling its entire 26% stake in the Riversdale to Rio Tinto.

Of this, the company included Rs 2,879 crore as one time profit in its results from the sale of its stake in Riversdale, the filing further said.

Besides this, the company also made a profit of Rs 511 crore by selling its stake in Tata Refractories to Krosaki Harima Corporation, an associate firm of Nippon Steel of Japan.

Tata Steel, in May, had offloaded 51% stake in group company Tata Refractories to Krosaki Harima and inducted the Japanese firm as a strategic partner. The deal was valued at Rs 576 crore, going by the Tata Refractories's (TRL) valuation at Rs 1,130 crore.

During the quarter, the company's cost on raw materials increased by 44% at Rs 11,228 crore, while its interest payments also went up by 23% to Rs 738 crore, the filing said.

On standalone basis, the company reported a net profit of Rs 2,219 crore, registering a growth of 41% during the April-June quarter vis-a-vis Rs 1,579 crore it had reported in Q1 of FY11, the filing added.

The standalone net sales of the company also went up by 20% during the quarter under review at Rs 7,792 crore as compared to Rs 6,471 crore of the corresponding period of last fiscal.