Tata Steel today reported a consolidated profit after tax of Rs 1,416 crore for the quarter ended December 31, 2007, an increase of 34.21 per cent over that in the corresponding period last year. |
The consolidated third quarter figure includes the performance of Tata Steel UK, the holding company of recently-acquired Corus. Corus was not a part of Tata Steel in the October-December a year ago. |
The Tata Steel scrip dipped 6.42 per cent to Rs 766.45 on the Bombay Stock Exchange on Wednesday as the figures were below market expectations. |
However, analysts expect a better performance in the quarters ahead after the recent price increases. |
The turnover for the quarter, excluding Tata Steel UK's turnover (Rs 23,867 crore), increased Rs 2,157 crore. |
Tata Steel's Indian operations contributed Rs 472 crore to the increase, mainly from price rises, while Rs 1,135 crore was from NatSteel and Rs 554 crore from the company's Thailand's operations through price rises and increased volumes. |
Materials cost Materials cost, excluding that for Tata Steel UK (Rs 11,253 crore) increased from Rs 1,919 crore to Rs 3,003 crore. |
The increase in volume of operations as well as increase in prices of inputs (scrap) consumed by NatSteel resulted in an increase of Rs 887 crore. Tata Steel Thailand contributed Rs 226 crore to the increase in volumes. |
Increase in NatSteel group was also due to increase in purchases of raw materials by TS Resources Australia for Tata Steel India. |
Interest cost The interest charges (net) were Rs 1,081 crore. Other than interest charge of Rs 606 crore of Tata Steel UK, the remainder increase was mainly due to increase in borrowings to fund the acquisition cost of Corus. |
Due to the rupee's appreciation, the company had a net exchange gain of Rs 45 crore. The actuarial gain on funds for employee benefits amounted to Rs 145 crore for the quarter. |