TATA STEEL announces stellar set of numbers:-
- Tata Steel, India largest private steel producing company reported a higher than market estimate net profit at Rs 1,191 crore, a growth of 155% for the quarter ended December 31, 2009 as compared to a profit of Rs 466 crore posted during the same quarter a year earlier.
- Total income of the company for the reporting quarter grew by 37.66% to Rs 6,638 crore as against Rs 4,822 crore recorded in the corresponding period a year ago.
- Tata Steel is world's No. 8 Steel-maker has achieved strong growth on a high base as Auto and Construction demand helped the company post handsome results. Consolidated results along with Corus would be out next month.
- The growth comes after Global steel production fell 8% in 2009 as demand from key industries shrank amidst a global economic downturn. As economies improve and steel stocks are run down, experts expect demand to rise about 10% this year.
- Globally Steel prices have risen in recent past but Nippon Steel, which is world's 2nd Steel company has halved its full-year profit forecast to far below the market consensus on sluggish demand for construction-use steel and higher raw materials costs.
- But now Tata Steel and Nippon have joined hands together as Tata Steel Board today approved a framework for co-operation between Tata Steel Ltd and Nippon Steel Corporation for the production and sales of automotive cold-rolled flat products at Jamshedpur to address the localisation needs of Indian automotive customers.
- Tata Steel will hold 51% and Nippon Steel will hold 49% of equity capital of the Joint Venture Company. The above joint venture aims to capture the growing demand for high-grade automotive cold-rolled flat products in India by setting up a capacity of 600,000 tonnes.
- Nippon will help Tata Steel by transferring its technology for producing high-grade cold-rolled steel sheet for automotive application, including skin panels and high tensile steels.
Technical View about Tata Steel CMP Rs 587:-
TATA STEEL has fallen towards Rs 553 from Rs 661 high in early January and the stock looks to trade in a range of Rs 570 to Rs 620 and dips may be used to buy this stock in short-term.
TATA STEEL-Nippon JV http://www.bseindia.com/qresann/news.asp?newsid=68f297a0-0710-450b-99fb-2446a3e1f9aa