Tata Steel Q2 net doubles on strong prices
Tata Iron and Steel Company Ltd., India's second-biggest steel maker, said on Friday its quarterly profit more than doubled on booming steel prices, surging demand and increased sales of value-added products.
India's oldest steel maker said net profit in the three months to September totalled 9.3 billion rupees ($204 million), compared with an average prediction of 8.7 billion rupees in a Reuters survey of nine analysts. Total income rose 42 percent to 37.95 billion rupees.
Steel demand in Asia's fourth-biggest economy, one of the world's ten fastest-growing, has surged as more people build homes, buy cars and motorcycles due to cheap credit and rising middle-class incomes.
Analysts estimated domestic steel prices in the past quarter have risen about 30 percent from a year ago to an average of $635 per tonne.
The company is expected to have sold 8 percent more steel in the past quarter from a year ago.
TISCO shares have fallen about 0.5 percent this year to Thursday's close, while the key Bombay share index was down 2.2 percent in the same period.
India's oldest steel maker said net profit in the three months to September totalled 9.3 billion rupees ($204 million), compared with an average prediction of 8.7 billion rupees in a Reuters survey of nine analysts. Total income rose 42 percent to 37.95 billion rupees.
Steel demand in Asia's fourth-biggest economy, one of the world's ten fastest-growing, has surged as more people build homes, buy cars and motorcycles due to cheap credit and rising middle-class incomes.
Analysts estimated domestic steel prices in the past quarter have risen about 30 percent from a year ago to an average of $635 per tonne.
The company is expected to have sold 8 percent more steel in the past quarter from a year ago.
TISCO shares have fallen about 0.5 percent this year to Thursday's close, while the key Bombay share index was down 2.2 percent in the same period.
