Tata Steel Q 1 net rises by 24%

By agencies   |   Thursday, 28 July 2005, 07:00 Hrs
Printer Print Email Email
MUMBAI: Tata Steel has reported a net profit of $210 million in the company’s first quarter ended June 30, 2005, a 24 percent growth over $169.4 million in the corresponding quarter the previous fiscal.

The company’s net sales stood at $787.5 million, a growth of 9.51 percent, compared with $ 719.1 million reported in the corresponding quarter the previous year.

Tata Steel’s topline growth was below expectations of the leading steel analysts who predicted about 30 percent growth in sales for the quarter under review.

The company achieved better operating margin of 45.8 percent for the quarter under review against 44.3 percent for the corresponding quarter the previous year.

For the quarter stated, the company’s steel production was down at 9.45 lakh tonne compared with 9.93 lakh tonne for the corresponding quarter the previous year.

¬ďAs steel prices keep falling, dealers defer their stocking up of steel for future as they expect prices to fall further. This leads to piling up of the inventory. Automatically, it cuts production in the hope of liquidating the inventory,¬Ē said a leading steel analyst in the country.

Global steel prices have fallen over the past couple of months. Steel prices in India, at present, have come down to Rs 22,000 per tonne, a 30-40 percent decline, compared with Rs 29,000 per tonne three months ago. Global steel prices have come down to $ 400 per tonne from $ 700 a few months back.

Tisco and other large steel companies like Steel Authority of India Ltd (Sail), Jindal Steel, Essar and Ispat have recently cut steel prices in the range of Rs 2,000 to Rs 3,000 per tonne. This was the second cut in recent months. It followed a cut in April when some of the companies had cut prices by about Rs 2,000 per tonne.

Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..