Tisco net profit declines

MUMBAI, JULY 15: Tata Iron and Steel Company8217;s net profit has declined in the first quarter due to lower price realisation from sales. The net profit slipped to Rs 24.79 crore in the first quarter ended June 1999 as compared to Rs 27.09 crore in the same period of last year.

In the first quarter of 1999-2000, the company8217;s net sales from operations increased to Rs 1,427.34 crore, up from Rs 1,352.76 crore in the first quarter of 1997-98. Other income increased to Rs 14.08 crore from Rs 9.17 crore. The operating profit jumped 3.78 per cent to Rs 236.32 crore. The company has said that although demand for flat products is firming up, domestic prices are still lower than first quarter prices of last year due to excess supply.

The company8217;s bottomline has also been affected on account of higher depreciation and interest charges following the commissioning of new plants at Jamshedpur, Bihar. While interest charges were up 10.56 per cent, depreciation jumped 14.29 per cent.

The outgo on account of theemployee separation scheme stood at Rs 32.27 crore from Rs 36.72 crore in the first quarter of last year. In volume terms, Tata Steel8217;s steel production grew 3.19 per cent in the first quarter.