Tata Steel

Tata Steel, the country’s largest steel maker and is one of the lowest cost producers in the world, has put up a stellar show in the recent quarter. Net profit for the three months ended September 30 jumped 75.9 per cent to Rs 115 crore from Rs 65.4 crore in the same period last year. Sales rose to Rs 1,870 crore in the second quarter from Rs 1,707 crore. Tisco’s decade-long modernisation programme was completed this year. Tisco has spent nearly Rs 7,000 crore ($1.5 billion) to completely modernise its 90-year old steel plant, and had set up a cold-rolling mill. The reason for optimism is that this is just the beginning of the move up the value chain. Tisco is now looking at new areas of businesses. It plans to diversify and cut its debts with cash surpluses. The company management is also bullish on the third quarter. Steel prices are higher than last year and the company has resumed exports to southeast Asia after a gap of three years. The company has also developed USA as a new market after the south Asian crisis and will continue to reap more benefits in future. The demand surge in construction and infrastructure sectors augur for the steel company. The stock has offlate been witnessing good volumes and may appreciate further.

Date: November 03, 2000. Price:Rs 105.65