Tata Iron & Steel Company Limited (Tisco) has posted a sharp growth in net profits to over Rs 1 bn for the quarter ended 30th June 2000. The company has benefited from a stronger growth in realisations. Furthermore, Tisco has been successful in cutting
costs which have contributed to better profit margins.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy) (m)
Diluted number of shares
Diluted Earnings per share*
The main reason for the company's fantastic performance has been an improvement at the operating level. Higher interest and tax expenditure have however limited the rise in bottomline.
We have projected that the company would post a growth of 57% in profits for the full year. However, in view of the faster than expected rise in turnover and margins, there is a need to take a re-look at the projections. Our estimates put the margins at 19% for the full year. However, one key factor that needs to be looked into is whether the company will be able to sustain such growth in coming quarters.
The stock currently trades at Rs 135, implying a P/E multiple of 12 on first quarter annualised earnings.
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