The Hindu Business Line : Tata Steel Q4 net rises 44 pc, to pay Rs 13

TATA Steel today reported a 44.47 per cent rise in net profit for the quarter ended March 2005 to Rs 908.58 crore from Rs 628.88 crore in the corresponding previous period. Net sales/income from operations was up 20.76 per cent at Rs 3,864.65 crore (Rs 3,200.27 crore).

For 2004-2005, the company's net profit zoomed by 98.95 per cent to Rs 3,474.16 crore (Rs 1,746.22 crore) on a 35.47 per cent gain in net sales/income from operations to Rs 14,498.95 crore (Rs 10,702.39 crore).

The company's board has recommended a dividend of 130 per cent.

At the BSE, the company's stock closed trade at Rs 356.95, marginally down from the previous close of Rs 357.

Mr B. Muthuraman, Managing Director, told newspersons that he expected HR prices to average $600 a tonne for the next 18 months, given the time needed for raw material supply corrections and the likely longer time needed for scrap steel supply to normalise.

The global steel industry is operating at 95 per cent capacity utilisation and China would drive steel consumption for some time with India also waiting to kick in. On World Steel Dynamics' opinion that prices may soften, he said: "Spot prices could, but their report also says prices may later strengthen."

Tata Steel last revised long-term prices (which forms bulk of business) in April by 15-20 per cent from the lower prices effected in August 2004.

Mr Muthuraman said that the company's results were despite that price cut, the 110-day shutdown of the `G' blast furnace and high raw material prices.

Hot metal production stood at 4.35 million tonnes (4.47 mt); crude steel 4.10 mt (4.22 mt), and saleable steel 4.11 mt (4.09 mt). Branded steel at Rs 3,362 crore (Rs 2,363 crore) accounted for 29 per cent (25 per cent) of domestic sales.

For 2005-2006, it plans to produce 5.2 mt of hot metal and five mt of crude steel, with saleable steel at 4.85 mt.

Supplies to the auto industry are pegged at 900,000 tonnes (615,000 tonnes).

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