Tata Steel consolidated Q2 net up 215 per cent at Rs4,704 crore

Tata Steel Ltd, India's largest private sector steel producer and the world's sixth largest, has reported a 215 per cent rise in its consolidated quarterly net profit, boosted by profits of its Indian operations.

Consolidated net profit, including that of its Anglo-Dutch unit, Corus, after minority interest and share of profit of associates, rose to Rs4,704 crore ($952 million) for the September quarter from Rs1,490 crore a year ago, the company said.

Last month, the company had said quarterly net profit from its Indian operation jumped 50 per cent to Rs1,788 crore for the September quarter.

Total income for the quarter ended 30 June 2008 stood at Rs44,283 crore against Rs32,521 crore in the quarter ended 30 September 2007.

The actuarial gains and losses on funds of employee benefits (pension plans) of Tata Steel UK for the period from 1 April 2008 have been accounted in `reserves and surplus' in the consolidated financial statements, in accordance with IFRS principles, it said.

This treatment is consistent with the accounting principles followed by Tata Steel UK and earlier by Corus Group plc under IFRS. The profit would have been higher by Rs960 crore and lower for for half year by Rs4,392 crore under the previous practice of recognising changes in actuarial valuations of pension plans, Tata Steel said.