Tata Steel half-yearly net zooms 349%

Banking on revenues generated by Corus, the Anglo-Dutch steelmaker it acquired last year,Tata Steel has recorded a 191 per cent increase in consolidated net profit at Rs 3,307.57 crore in the quarter September 30, 2007, as compared with Rs 1,137.51 crore in the corresponding quarter last financial year.

Profit before exceptional items and tax stood at Rs 2,346.83 crore, an increase of 38 per cent as against Rs 1,699.93 crore in the earlier quarter.

During the quarter, exceptional items stood at Rs 1,899.64 crore, which includes an actuarial gain of Rs 1,850.25 crore on funds for employee benefits. Total income zoomed 425 per cent to Rs 32,535.15 crore from Rs 6,192.95 crore. Total expenditure, however, jumped 551 per cent to Rs 28,803.59 crore as well.

For the half-year ended September 31,2007 (H1FY08), consolidated net profit increased 349 per cent to Rs 9,703 crore.

The results for H1FY08 include a gain from exceptional items of Rs 6,354 crore mainly comprising actuarial gain on funds for employee benefits of Rs 5,971 crore. 

The actuarial gain on funds for employee benefits represents increase in value of investments held by pension trusts arising out of increase in yield rates on bonds.

Profit before exceptional items and taxes stood at Rs 5,483 crore, an increase of 70 per cent over the same period last year.

Total income jumped 431 per cent to Rs 63,872 crore as against Rs 12,020 crore. The increase comprises mainly of Rs 49,809 crore of Corus income and increase of Rs 866 crore in Indian operations, Rs 1,237 crore in NatSteel and Rs 512 crore in Tata Steel, Thailand.

Total expenditure for the six-month period amounted to Rs 56,112 crore, an increase of 547 per cent over the previous year's Rs 8,665 crore. The increase is primarily due to inclusion of  Corus expenditures.

The material cost stood at Rs 28,338 crore, an increase of 595 per cent from Rs 4,076 crore. The increase is largely due to inclusion of Corus's material cost (mc) of Rs 23,406 crore, increase in NatSteel's mc by Rs 1,122 crore, Tata Steel Thailand (Rs 356 crore).

The increase in the material cost of NatSteel and Tata Steel Thailand was due to the increase in the volume of operations and rise in scrap prices.

The interest expenditure stood at Rs 2,277 crore, an increase of 1,678 per cent from Rs 128 crore in the same period last year. The company has attributed the increase to interest charges on the borrowings to fund the acquisition of Corus.

Tata Steel published standalone audited results for the six months ended September 30, 2007 on October 26, 2007. The previous figures did not include the Corus operations.