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Tata Steel's third quarter net profit on a standalone basis increased 27 per cent to Rs 1,513 crore (Rs 1,192 crore) largely due to improved product mix and higher output. Net sales rose 16 per cent to Rs 7,397 crore (Rs 6,375 crore).
Mr H.M. Nerurkar, Managing Director, Tata Steel, said the company has managed to post a better performance despite inflationary concerns as it focused on high-end steel products.
“The expansion at Jamshedpur is expected to provide an impetus to future earnings.
“The South-East Asian operations were affected in the third quarter by rising scrap prices and a lag in implementing higher finished product prices,” he added.
The company has set itself a production target of one million tonnes of automobile grade steel for this fiscal, of which the skin panel will constitute about 10 per cent, he said.
On the six-million-tonne greenfield steel manufacturing project planned in Orissa, Mr Nerurkar said the company has commenced ground work on the first phase of 3 mt.
Tata Steel will constitute a board of directors within a month for its joint venture with Nippon Steel Corporation for producing automobile grade steel.
Raw material cost
Expressing concern over increasing raw material prices, Mr Nerurkar said that while the steel demand is expected to remain robust in the coming days, managing the raw material costs in the short-term will be a key challenge.
Tata Steel shares on the BSE were down by 0.43 per cent at Rs 617 a piece on Tuesday.
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