Rising product prices and a fairly sound demand for products has seen Tisco put up a good performance for 2002-03. Total income was Rs 8,771.71 crore (Rs 6,366.91 crore) against which the total spending went up by 18 per cent to Rs 7,529.83 crore (Rs 6,366.91 crore) resulting in a huge 198 per cent increase in the net profits (excluding extraordinaries).
At Rs 8,721.32 crore (Rs 6,697.49 crore) income from operations was up 30 per cent from the year-ago period. Tisco’s sales volume this year was 11 per cent up from the corresponding previous period with the company having produced more than 4.1 million tonne of crude steel during the year. Thanks to fast-rising product prices, in line with volume expansion, Tisco’s sales realisations also improved leading to a better top-line performance. Overall operational costs went up by only 18 per cent over the preceding year to Rs 6,419.34 crore (Rs 5,426.31 crore). Rationalising employee strength saw the staff cost rise by only 11 per cent while other expenditure went up by 24 per cent over previous year. A powerful rise in sales compared with the expenses has seen margins improve dramatically.
At Rs 2,301.98 crore (Rs 1,271.18 crore) operating profit went up by a huge 81 per cent over previous year. OPM shot up to 26 per cent from 19 per cent in the previous year.
Other income at Rs 50.39 crore (Rs 85.63 crore) was down 41 per cent compared with previous year’s, but was fairly compensated by a lower interest cost which was down 18 per cent to Rs 304.82 crore (Rs 369.75 crore). Depreciation was up 6 per cent to Rs 555.48 crore (Rs 524.75 crore). Prudent cost management and rising volumes have seen Tisco’s profitability improve. Despite a huge rise in the tax provision at Rs 250.19 crore (Rs 46.10 crore) net profit (before extraordinaries) was up 198 per cent to Rs 1,241.88 crore (Rs 416.21 crore). Extraordinary expenses stood at Rs 229.57 crore (Rs 211.31 crore) after which profit rose by huge 394 per cent over previous year.
Tisco’s fourth quarter performance too has been excellent. Net profit was up 295 per cent at Rs 483.57 per cent (Rs 122.47 crore). Operational income was up 39 per cent year-on-year (11 per cent sequential) at Rs 2,664.76 crore (Rs 1,911.48 crore).
The stock currently trading at Rs 150 discounts its last financial year’s EPS of Rs 33.75 by just about four times.