The Hindu Business Line : Tata Steel consolidated Q3 net at Rs 1,416 cr

Mumbai, March 12 Overseas subsidiaries of Tata Steel have contributed Rs 346.96 crore to the group’s net profit of Rs 1,415.54 crore in the third quarter of the current fiscal.

For the quarter ended December 31, Tata Steel, on a standalone basis, reported a net profit of Rs 1,068.58 crore.

The steel major bought the Anglo-Dutch Corus Group last year for $12.9 billion. The other companies in the group include Natsteel and Tata Steel Thailand.

For the same quarter last year, the group posted a net profit of Rs 1,054.61 crore. The previous year’s figures do not include the financial results of Tata Steel UK (which includes the Corus Group) and this period is inclusive of it.

Total income for the quarter ended December 2007, increased to Rs 32,096.03 crore from Rs 6,071.76 crore.

Net interest charges for the quarter were Rs 1,080.88 crore as against Rs 96.23 crore for the corresponding quarter a year ago. On a standalone basis, Tata Steel’s interest component for the quarter was Rs 363 crore.

The company said other than interest charge of Rs 606 crore of Tata Steel UK, the remaining increase was mainly due to increase in borrowings to fund the acquisition cost of Corus.

Turnover

The company said that excluding the turnover of Tata Steel UK of Rs 23,867 crore for the quarter, the group turnover registered an increase of Rs 2,157 crore. This was mainly due to increases in Tata Steel’s Indian operations (Rs 472 crore), Natsteel (Rs 1,135 crore) and Tata Steel Thailand (Rs 554 crore). The increase in Tata Steel’s India operations was primarily due to increase in prices, whereas the rise in Natsteel and Tata Steel Thailand was attributed to increase in price and volume.

Total Expenditure

Total expenditure for the quarter ended December 31, 2007 was Rs 28,967 crore, (including a total expenditure of Rs 22,808 crore of Tata Steel UK), against Rs 4,325 crore during the previous year.

The material cost, excluding that of Tata Steel UK of Rs 11,253 crore, rose to Rs 3,003 crore from Rs 1,919 crore.

The other expenditure, excluding that of Tata Steel UK (Rs 5,053 crore) was Rs 1,395 crore in Q3 FY08 against Rs 1,133 crore in Q3 FY07.

Due to rupee appreciation against major foreign currencies in Q3 FY08, the company had a net exchange gain of Rs 45 crore.

The actuarial gain on funds for employee benefits amounted to Rs 145 crore for the quarter ended December 31, 2007. The gain represents reduction in pension liability arising out of higher discount rate, reflecting improved yields on bonds.

On Wednesday, the company stock closed at Rs 766.45, down 6.42 per cent over previous close.

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Tata Steel consolidated Q3 net at Rs 1,416 cr