Tata Steel bottom line up 41% on higher volumes

BS 200 SCORECARD

Tata Steel reported a net profit of Rs 1,064 crore in the third quarter ended December 2006, recording a 41 per cent increase over the net profit in the comparable period last year.

The company's turnover increased 20 per cent to Rs 5,038 crore, driven by a 11 per cent increase in saleable steel production and 11.5 per cent rise in steel sales volumes.

Total income (net of excise) increased from Rs 5,082.3 crore to Rs 6,072.2 crore during the same period.

Analysts said the results could have been better but for the 36 per cent increase in raw material costs.

Global contract iron ore prices had increased 19 per cent over the past year, they added.

For the April-December period, the company recorded a turnover of Rs 14,153 crore, an increase of 13 per cent and net profit of Rs 3,119 crore, a growth of 15 per cent over the figures in the same period last year.

Supplies of cold rolled and galvanised products to the auto sector, one of the focus areas for the company, had increased by 21 per cent at 0.35 million tonne during the April-December period.

Total supplies of steel to the auto sector increased 29 per cent at 0.63 million tonne.

The company also recorded an increase in sale of branded products by 14 per cent.

The turnover of all branded products increased 17 per cent year-on-year at Rs 3,262 crore in the nine months.

Tata Steel recorded an EBITDA margin of 42 per cent and net profit margin of 24 per cent during the period.