Tisco sees higher sales in current year

MUMBAI, JULY 20. Tata Iron and Steel Company (Tata Steel) was confident of achieving a turnover higher by about Rs. 600 crores during 2000-01 than the previous year, Mr. Ratan Tata, chairman, Tata Steel said while addressing the company's annual general meeting here today. This would come from the recently commissioned 1.2 million tonnes per annum cold rolling mill.

Mr. Tata, while remaining optimistic about the company's future, said the demand resistance for passenger cars; large consumer of steel, ``is an area of concern. Although the economic recovery has fuelled sales, there is some concern regarding its sustainability,'' he said.

Mr. Tata said the confidence in the steel industry stems from the fact that per capita consumption of steel in India is low. Indian per capita consumption of steel is one fourth of that in China and one-fiftieth of that in Korea.

Tata Steel is moving into e-commerce, which may enhance shareholder value and it is launching a B2B portal to function as a steel exchange.

The company has also tied up with IBM to outsource its information technology requirement.

Regarding Tata Steel's entering the new economy, Mr. Tata that the company was a major shareholder in the Tata group's telecom venture. The shareholders approved the company's employee stock option scheme (ESOP) which Mr. Tata described as ``a much deserved incentive to the employees.''

Spurt in net profit

The net profit of the company has spurted to Rs. 101.40 crores during the quarter ended June 30, 2000 from Rs. 24.79 crores in the corresponding period last year.

Net sales (income from operations) were higher Rs. 1,728.27 crores against Rs. 1,427.34 crores. The export turnover was Rs. 177.42 crores ($39.95 million) against Rs. 126.37 crores ($29.50 million).

Steel production during the quarter was 8.34 lakh tonnes as compared to 7.48 lakh tonnes. Sales stood at 7.42 lakh tonnes against 6.56 lakh tonnes.

Other income amounted to Rs. 15.53 crores (Rs. 14.08 crores). Interest charges were Rs. 103.11 crores (Rs. 85.84 crores). Depreciation claimed Rs. 112.15 crores (Rs. 104 crores). The provision for taxation is Rs. 9.12 crores (Rs. 3.50 crores).