World’s sixth-largest steel maker Tata Steel posted a nearly three-time increase in its consolidated net profit (including Corus) for the financial year 2007-08. The company’s profit increased to Rs 12,322 crore against Rs 4,166 crore last year. But net profit for the fiscal fourth quarter fell to Rs 1,274 crore from Rs 1,420 crore in the January-march quarter. Total income of the company shot up by 415 per cent in the year to Rs 1,32,110 crore from Rs 25,650.45 crore. The company’s board has recommended 160 pert cent dividend.Though higher demand last year led to better price realisation last year, steel producers have been hit hard due to the hike in coal and iron ore prices. “In the last four-five years, there has been a consistent growth of 6-7 per cent in demand for steel. Looking at the present global economic scenario it might come down to 5-6 per cent. Except from some sectors such as construction, we see good demand to continue in this year too,” said CEO of Tata Steel UK (Corus) Philippe Varin.“Last year India imported around six million tonnes of steel for consumption. This year it is expected to go up to 8-9 mt. Even if the economy grows at a sluggish rate, there will be a substantial difference between what India needs and what India can produce,” said Tata Steel managing director B Muthuraman. Feeling the pressure exerted by government to hold prices to curb inflation, Muthuraman said that Indian “steel prices are the lowest in the world, and the industry was feeling the pinch”. The government asked steelmakers to lower prices by as much as 10 per cent last month to help contain inflation. The producers agreed to maintain prices until the end of next month.The company’s chief financial officer Koushik Chatterjee said that Tata Steel would reorganise internally in the next six to 12 months to ensure steady growth in captive raw material assets. Ahead of the results, Tata Steel shares closed up 1.9 per cent at Rs 757.10 on the Bombay Stock Exchange.SOLID RESULTS415 per cent Rise in total income of the company160 per cent The dividend recommended by the company board1.9 cent Rise in Tata Steel shares after the result on Thursday“Even if the economy grows at a sluggish rate, there will be a substantial difference between what India needs and what India can produce.”B. Muthuraman
