Tata Steel net up 29 per cent on better realisation of prices

Tata Steel has reported a 29-per cent increase in net profit for the quarter ended 30 June. Net profits rose from Rs953.41 crore in the June quarter last year to Rs1,222.11 crore this year on a higher net income of Rs4,197.58 (an increase of 7.9 per cent) crore, against Rs3,889.45 crore logged for the same period last year.

This was despite total steel production for the quarter dropping marginally to 10,64,832 tonnes against 11,08,514 tonnes and sales coming down to 10,40,963 tonnes against 11,15,066 tonnes. The export turnover was lower at Rs362.01 crore against Rs456.94 crore.

The steel maker said its average price realization on the sale of steel improved roughly by Rs5,350 per tonne thereby generating additional revenue of a little over Rs550 crore, which is more than the increase in net profits.

The appreciation of the rupee helped the company gain Rs686.43 crore due to unrealised exchange differences on foreign currency borrowings and a realised loss of Rs133.41 crore on foreign currency deposits, mainly arising out of the Corus acquisition, giving rise to a net gain of Rs553.02 crore.

Ratan Tata, chairman, Tata Steel, said in a statement that the consolidated results, including for Corus will be published by end August.