The Hindu Business Line : Tata Steel net up 24 pc

Mr Ratan Tata, Chairman, Tata Steel, with Mr B. Muthuraman, Managing Director, addressing shareholders at the company AGM in Mumbai on Wednesday. - Paul Noronha

Mumbai , July 27

TATA Steel has reported a 23.96 per cent rise in net profit for the first quarter ended June 30, 2005, to Rs 924.11 crore from the previous corresponding Rs 745.49 crore.

The results were below market expectation, therefore, drove the share price of the steel major down to Rs 375.40 from the previous close of Rs 389.60 on the Bombay Stock Exchange.

Net sales/income from operations was up 9.47 per cent to Rs 3,464.52 crore (Rs 3,164.65 crore).

According to an official statement, steel production touched 9,45,633 tonnes (9,93,461 tonnes) and its sales, 8,54,238 tonnes (8,83,130 tonnes).

Export turnover amounted to Rs 408.11 crore (Rs 392.13 crore).

"The softening of steel prices has impacted revenues but we continue to have confidence in the growth of steel demand,'' Mr Ratan Tata, Chairman, Tata Steel, told shareholders at the company's 98th annual general meeting. He said the company would endeavour to keep its margins intact.

Tata Steel, he said, will have to continue cost control measures. The company would look at capacity additions in India as well as overseas.

Steel revenues moved up to Rs 3,031.52 crore (Rs 2,900.38 crore) and that of ferro alloys to Rs 375.13 crore (Rs 305.03 crore).

At the AGM on Wednesday attendance of shareholders was thin. However, all the directors on the board of the company were present at the meeting.

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