Tata Steel’s first quarter profit jumps three-folds

August 12th, 2011 - 6:46 pm ICT by IANS  

Mumbai, Aug 12 (IANS) One of the world’s leading steel majors, Tata Steel Friday reported an almost three-fold rise in its net profit for the first quarter of the current fiscal at Rs.5,346.55 crore mainly owing to a one-time gain from sale of its stake in two companies.

The global steel major had sold its 51 percent stake in Tata Refractories to Krosaki Harima Corporation for Rs.576.10 crore and offloaded a 26.27 percent stake in Australian firm Riversdale Mining to Rio Tinto for Rs.4,942.07 crore.

The net profit in the previous corresponding quarter was Rs.1,825.26 crore.

“During the quarter, the company tendered its entire 26.27 percent stake in Riversdale Mining to Rio Tinto for A$1,060 million (Rs.4,942.07 crore),” the company said in a regulatory filing to the Bombay Stock Exchange (BSE).

The company’s total income rose by 21.58 percent to Rs.36,882.43 crore as against Rs.27,010.06 crore in the previous corresponding quarter.

Standalone net profit, too, rose by a healthy 40.5 percent in the April-June quarter at Rs.2,219.43 crore compared to Rs.1,579.39 crore for the like period of 2010-11.

Standalone total income of the company increased by 27.46 percent to Rs.8,412.89 crore during the quarter under review.

The company said it expected growth to remain muted in the short term in emerging markets.

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