The companys other income has jumped to Rs 37.93 crore from Rs 17.23 crore over the corresponding period last year. Telco has not offered any explanation for the sharp rise in other income. The company has provided for Rs 37.35 crore by way of MAT. There was no such liability in the previous corresponding period.
The Tisco board, which met yesterday, approved the unaudited financial performance for the first six months of the current financial year.
On the face of it, the results are pretty good. The first half of last year was relatively weak, an analyst said. However, I see a net profit of Rs 624 crore for the whole of 1995-96.
However, most analysts felt that the second half this year would not be as good as the second half of 1995. We have to take into account that this year the budget was presented in July instead of February, and hence the increase in input costs came only in July. Last year, steel prices were increased twice in April and in October. The benefits of the price increase has accrued to the first six-month results, they said.
The companys turnover has risen 21 per cent to Rs 3,021 crore (Rs 2,496.07 crore) in the first six months, while operating profits rose 23 per cent to Rs 622.66 crore (Rs 508.20 crore). Its profit before tax shot up 44 per cent to Rs 289.57 crore (Rs 201.33 crore).
Its sales volume witnessed an increase of 8 per cent to 11.94 lakh tonnes from 11.08 lakh tonnes, while production was up to 13.39 lakh tonnes from 13.20 lakh tonnes.