TISCO upbeat on 4th quarter

CALCUTTA, JANUARY 29: India’s largest private steel maker Tata Iron and Steel Co expects to benefit from a better product mix, lower costs and higher prices in the last quarter of 1999/2000 (April-March), its managing director said.

"The last quarter will give a better reflection of price increases," J J Irani told Reuters in an interview. TISCO announced last week that third-quarter net profit jumped to Rs 146 crore ($33.5 million) from Rs 16.21 crore in the year-ago quarter, helped by an increase in the firm’s other income. Analysts said they expected a better operating performance from TISCO because steel prices had increased in the third quarter, but Irani said there were other factors at work.

"If somebody takes the trouble to look at our results withsome intelligence and detail, they will see that even without the cement (division’s sale), the performance of the company is much better," he said. Irani said the company improved its net profit because of a better product mix and lower costs ratherthan higher prices. "Quite a few of them have been effected during the third quarter and quite a few of them in fact after the quarter has ended," he said. A TISCO spokesman said the company offered different terms to its bulk buyers and the terms of payment, including the credit offered to its customers, were not uniform.