Tata Steel reaps Corus gains
Tata Steel Ltd’s consolidated net profit rose nearly three-fold to Rs 12,349.98 crore for the year ending March 31, 2008.business Updated: Jun 26, 2008 20:33 IST
Tata Steel Ltd’s consolidated net profit rose nearly three-fold to Rs 12,349.98 crore for the year ending March 31, 2008, and the company recommended a dividend of 160 per cent for the year.
This is the first year that the Corus Group's financial results are being consolidated with Tata Steel. Tata Steel's consolidated income has jumped to Rs 1,32,110.09 crore in 2007-08 from Rs 25,650.45 crore in 2006-07.
Tata Steel along with its subsidiaries is now the sixth largest steel maker in the world. The board has also recommended a dividend of 160 per cent on ordinary shares of Rs 10 each for the year ended March 31, 2008.
The company's standalone net profit for the year moved up by 11 per cent to Rs 4,687.03 crore and its income grew to Rs 20,028.28 crore as against Rs 17,984.76 crore for 2006-07. Shares of the company closed at Rs 757.10, up 1.90 per cent on the Bombay Stock Exchange.
Managing Director B Muthuraman said: “Even if the economy slows down there should be a substantial demand-supply gap. Prices (are expected) to go up to international levels. The government wants to control inflation and we need to help the process so we have forcibly dropped prices.”
Koushik Chatterjee, Chief Financial Officer of the company, said Tata Steel was looking to reorganise the group structure to unlock value. The company’s global mining resources are under a company named Tata Steel Global Resources. Chatterjee said the company needed further capital for acquisitions.
About the Orissa project Muthuraman said: “The Kalinganagar greenfield project is delayed due to iron ore allotment and land acquisition. But order for machinery (has been) given and the project should start soon”.