A robust performance by its Indian operations and improved performance at the European operations saw Tata Steel on Tuesday report a 90 per cent jump in its consolidated net profit for the first quarter of 2013-14 at Rs.1,139 crore.
The consolidated turnover was lower by 3 per cent at Rs.32,805 crore while operating profit was up 5 per cent at Rs.3,755 crore while operating margin improved to 11.4 per cent (10.6 per cent).
Deliveries were higher at 6.08 million tonnes (5.68 million tonnes).
Despite softer markets, weakening economic conditions and a seasonally weak quarter, the company’s Indian operations were steady during the period recording a flat net profit of Rs.1,356 crore (Rs.1,357 crore) on a 6 per cent higher turnover of Rs.9,455 crore. Operating profit was up 4 per cent at Rs.2,897 crore while operating margin was 30.6 per cent.
Deliveries totalled 2 million tonnes (1.59 million tonnes). Flat product sales volume increased 44 per cent and value-added products sales 15 per cent.
In a statement, H. M. Nerurkar, Managing Director, said, “the Indian operations delivered a steady performance in a subdued market environment with deliveries growing at an enhanced pace over the comparable period last year. Work on the greenfield project in Odisha continues in full swing.’’
Improving European operations
Tata Steel Europe reported a higher operating profit of Rs.777 crore (Rs.620 crore) on a 11 per cent lower turnover of Rs.18,432 crore. Deliveries were slightly lower at 3.14 million tonnes (3.21 million tonnes).
“Our European facilities recorded higher production volumes after we completed some major plant refurbishment last year, which gave us a more stable production platform and greater operational flexibility. There have recently been encouraging signs of improving economic conditions in some European economies, the U.K. in particular, and we are poised to capitalise should these translate more strongly into increased demand from steel-intensive sectors,” Karl-Ulrich Kohler, Tata Steel Europe MD & CEO, said in a statement.
Tata Steel share on Tuesday closed trade on the Bombay Stock Exchange at Rs.241.15; up 1.94 per cent.