Mumbai: Tata Iron and Steel Company Ltd (Tata Steel) has reported a 394-per cent rise in its net profit to Rs 1,012.31 crore for the financial year 2002-03, a year of good steel prices, as against the previous corresponding Rs 204.90 crore.

Its board recommended a dividend of 80 per cent, entailing an outflow of Rs 335 crore, including dividend tax. FY03 net sales/income from operations was up 30.22 per cent to Rs 8,721.32 crore (Rs 6,697.49 crore).

Tata Steel managing director B Muthuraman, while acknowledging FY03''s buoyant steel prices, stresses that the results were founded on better product and market mix and, hence, not to be wholly doubted for its sustainability.

He points out that while the average HRC price was near similar in FY96, FY01 and FY03, Tata Steel''s operating profit was Rs 1,154 crore, Rs 1,707 crore and Rs 2,302 crore, respectively. "Key differentiators were rising volume and product mix."