Tata Steel on Friday reported nearly three-fold jump in consolidated net profit at Rs 5,346.55 crore for the quarter ended June 30, buoyed by mainly one-time gain after sale of stakes in Australian mining firm Riversdale and Tata Refractories.
The company had reported a net profit of Rs 1,825.26 crore during the corresponding quarter of last fiscal.
Tata Steel: Nerves of steel Net sales of the company also rose by 21.58 per cent to Rs 32,839.90 crore during the quarter under review, compared to Rs 27,010.06 crore, the company said in a filing to the Bombay Stock Exchange.
Shares of the company were quoted at Rs 479.85 apiece on the Bombay Stock Exchange at 1450 hrs, down 0.97 per cent from the previous close.
It added that in the April-June quarter, the company realised Rs 4,942.07 crore (AUD 1,060 million) by selling its entire 26.27 per cent stake in the
Riversdale to Rio Tinto.
Of this, the company included Rs 2,879.29 crore as one time profit in its results from the sale of its stake in Riversdale, the filing further said.
Besides this, the company also made a profit of Rs 511.01 crore by selling its stake in Tata Refractories Ltd to Krosaki Harima Corporation, an associate firm of Nippon Steel of Japan.
Tata Steel, in May, had offloaded 51 per cent stake in group company Tata Refractories to Krosaki Harima and inducted the Japanese firm as a strategic partner. The deal was valued at Rs 576.3 crore, going by the Tata Refractories's (TRL) valuation at Rs 1,130 crore.
During the quarter, the company's cost on raw materials increased by 43.84 per cent at Rs 11,227.73 crore, while its interest payments also went up by 23.43 per cent to Rs 737.66 crore, the filing said.
On standalone basis, the company reported a net profit of Rs 2,219.43 crore, registering a growth of 40.52 per cent during the April-June quarter vis-a-vis Rs 1,579.39 crore it had reported in Q1 of FY'11, the filing added.
The standalone net sales of the company also went up by 20.41 per cent during the quarter under review at Rs 7,792.20 crore as compared to Rs 6,471.27 crore of the corresponding period of last fiscal.
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