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An improved product mix and money from the sale of its Teesside Cast Products (TCP) have helped Tata Steel report a 71 per cent increase in its consolidated net profit for the fourth quarter ended March 31, 2011. Net profit for the quarter stood at Rs 4,242 crore against Rs 2,472 crore in the corresponding quarter last year.
The increase in profits was helped by a $561-million (about Rs 2,539 crore) income from sale of TCP. Though the deal size was $469 million, the working capital freed gave an additional benefit of $92 million, said Mr Koushik Chatterjee, Chief Financial Officer, Tata Steel.
The company's turnover for the quarter stood at Rs 34,345 crore, up about 23 per cent over Rs 24,930 crore in the corresponding quarter last year.
Commenting on the results, Mr Karl-Ulrich Kohler, Managing Director and Chief Executive Officer, Tata Steel Europe, said: “Higher selling prices and deliveries gave us a particularly strong end to the quarter with additional one-off financial benefits from items such as the completion of the TCP sale.”
For the full fiscal 2010-11, Tata Steel's consolidated net sales stood at Rs 117,149 crore, up 15 per cent over Rs 101,757 crore in the previous fiscal. The company registered a net profit of Rs 8,856 crore for the fiscal against a net loss of Rs 2,120 crore in the previous fiscal.
The Board of Directors recommended a dividend of Rs 12 a share. On Wednesday, Tata Steel closed at Rs 551.5, down 0.83 per cent over the previous day's close.
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