Led by a strong performance in the domestic market, Tata Steel on Tuesday reported a 112% jump in its consolidated net profit for the quarter ended December 31, 2010 to Rs 1,003 crore against Rs 473 crore during the same quarter in the previous financial year.
The consolidated turnover of the firm also went up by 11% to R29,089 crore against R26,202 crore on account of higher average realisation across the group.
The performance of the firm in India, however, was significantly better than elsewhere, with the European operations bearing the brunt of higher cost of raw materials.
“The performance of the Indian operations in the third quarter, in spite of inflationary concerns, continued to be robust on the back of improved product mix and efficiency enhancement measures,” said HM Nerurkar, managing director, Tata Steel. “The expansion at Jamshedpur is expected to provide impetus to future earnings. South East Asian operations were affected in the third quarter by rising scrap prices and a lag in implementing higher finished product prices.”
During the quarter steel delivery fell by 5.7% to 5.68 million tonnes on weak demand.