A sharp jump in quarterly consolidated net profit and challenges from a tight raw material position were the key areas of Tata Steel chairman Ratan Tata’s address to shareholders at the company’s 101st annual general meeting (AGM), which was marked by fear of protests by environmentalists.
The Mumbai-based steel company, which is now the world’s fifth largest by capacity after the acquisition of Corus, said its consolidated net profit for the April-June period surged 60%, mainly as Corus was able to raise product prices unlike parent Tata Steel that has been bound by an assurance to the government to maintain prices. Tata Steel, along with other primary steel makers, had agreed to maintain prices for three months through to May, to help the government control inflation. On Thursday, the government said inflation had moderated to 12.40% from 12.63%.
Consolidated net profit for the first quarter, after minority interest, totalled Rs 3,900.90 crore, compared to Rs 2,431.50 crore. Sales in the same period grew 39% to Rs 43,560 crore.
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