Spurt in Tata Steel first quarter net profit

August 13, 2013 10:53 pm | Updated November 16, 2021 10:17 pm IST - MUMBAI:

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.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.