Tata Steel recorded its highest ever net profit in 2002/2003
During fiscal 2002/2003 major Indian steel producer
Tata Steel, for the first time, posted a net profit of Rupees 10.12 billion (approx. $214.9 million) which is almost double from its previous highest profit Rp 5.53 million (approx. $117.5 million). According to an official from the company, this result is related to several price increases made throughout the year, together with better product mix, high sales and cost cutting measures.
Although price hikes slowed down increases in sales volume, such as only 10.5% during the whole year, net sales grew up by 30% in 2002/2003 compared to previous year from Rp 66.97 billion to Rp 87.21 billion ($1.8 billion). Besides,
Tata Steel exported only 15% of its total sales which will enable the company to reduce its dependence on exports.
For expanding its capacity by 1 million tons as previously reported in SteelOrbis, company allocated a capital expenditure of Rp 17 billion (approx. $361 million). This year
Tata Steel will reportedly invest Rp 5.5 billion (approx. $116.9 million). Added to that, to cut down 3.000 jobs and reduce outstanding debt in fiscal 2003/2004 by Rp 4 billion are among company's future plans.