Country's largest steelmaker Tata Steel on Thursday reported a 60.4 per cent gain in net profit for the April-June quarter, egged on by revenues of its Anglo- Dutch subsidiary Corus Group. The company's consolidated profit during the quarter stood at Rs 3,914.6 crore as compared to Rs 2,409.1 crore during the same period last year.
While Tata Steel’s profits from domestic operations have been hampered by price controls levied by the government, Corus has benefitted on account of higher prices and increase in production of high grade steel.
Company’s revenue during the quarter went up by 39.6 per cent to Rs 43,508 crore from Rs 31,162 crore.
Company chairman Ratan Tata admitted that rising raw material costs may lead to a recession in the industry. The company's raw material consumption during the quarter grew by almost 58 per cent from Rs 7,443 crore to Rs 11,749 crore.
The company is also looking at forming iron-ore and coal ventures in Mozambique and is scouting for limestone ventures in Oman, Tata said at the company's shareholder meeting today.
Tata Steel's share price fell 1.6 per cent to Rs 571.95 per share at the close of trading in the stock exchange.