Steel''s results for the fourth quarter have come below
expectations. Though the company managed to grow volumes,
margins were impacted by higher input costs.
the fourth quarter ended 31 Match 2006, stand-alone net
profits of Tata Steel declined 13.81 per cent to Rs783.11
crore from Rs908.58 crore. Stand alone revenues for the
quarter increased 7.68 per cent to Rs4,193.33 crore from
Rs3,894.39 crore for the previous year quarter.
profits for the quarter declined 9.85 per cent to Rs1,300.8
crore from Rs1,442.93 crore. Operating margins as a percentage
of net sales declined nearly 600 basis points to 31.5
per cent from 37.34 per cent.
for the quarter was affected by higher input costs, which
increased 21.83 per cent as compared to the pervious year
quarter. Cost of power rose 27 per cent while freight
and transportation charges increased only 8.1 per cent.
costs increased 17.78 per cent while other expenses went
up by 11.6 per cent. Depreciation costs increased 26.96
income for the quarter more than doubled to Rs64.36 crore
from Rs29.74 crore for the previous year quarter.
net profits for the quarter dropped 11.65 per cent to
Rs813.22 crore from Rs920.5 crore for the previous year
quarter. Consolidated revenues for the quarter increased
20.32 per cent to Rs5,615.59 crore from Rs4,667.2 crore.
the full year 2005-06, consolidated net profits of the
company are at Rs3,734.62 crore - an increase of 3.65
per cent from the previous year figure of Rs3,603.26 crore.
Consolidated revenues increased 26.64 per cent to Rs20,491.04
crore from Rs16,181.05 crore.
Steel is planning to raise up to $1 billion from the international
markets to finance its expansion plans. The company is
expanding capacity at Jamshedpur besides setting up green
field units in the states of Chattisgarh and Orissa.
plans of the company include a new plant in Bangladesh
expansion of facilities at its subsidiary NatSteel of
Singapore. The company is reportedly the highest bidder
for a large steel company in South Africa.