100th Annual Report 2006-2007 - Tata Steel

Management Discussion and Analysis
3. Analysis of the Financial Performance of the
Company
a) Net sales/Income from operations
Figures in Rs. crores
FY 2006-07 FY 2005-06 Change Change %
Sales of products 19,018.20 16,521.44 2,496.76 15%
Sale of power and
water
513.96 393.50 120.46 31%
Income from services,
sale of miscellaneous
goods, stores and rent
230.41 229.28 1.13 0%
etc.
Total sale of products
and services
19,762.57 17,144.22 2,618.35 15%
Less : Excise Duty 2,210.55 1,928.72 281.83 15%
Net sales/income from
operations
17,552.02 15,215.50 2,336.52 15%
Sale of products and services increased by 15% to
Rs. 19,762.57 crores, mainly due to increase in volumes
and prices of almost all products of the Company. Steel
sales increased by 19% to Rs. 14,511 crores as compared
to Rs. 12,220 crores in the previous year. Tubes sales
increased by 48% to Rs. 1,276.30 crores. The Ferro Alloys
and Minerals division sales increased by 16% to Rs. 1,522.71
crores. The Bearings division sales increased by 25% to
Rs. 165.41 crores.
b) Purchase of finished and semi finished steel and other
products
Figures in Rs. crores
Purchase of finished,
semi-finished steel and
other products
FY 2006-07 FY 2005-06 Change Change %
450.60 656.08 (205.48) -31%
The purchase of finished and semi finished steel and other
products were lower by 31% at Rs. 450.60 crores as compared
to Rs. 656.08 crores in the previous year. The decrease is mainly
on account of lower purchases of metallics during the year in
view of increased production of hot metal.
c) Raw materials consumed
Raw materials
consumed
Figures in Rs. crores
FY 2006-07 FY 2005-06 Change Change %
3,121.46 2,368.30 753.16 32%
The raw materials consumed increased by 32% to Rs. 3,121.46
crores as compared to Rs. 2,368.30 crores in the previous year,
mainly due to higher consumption of raw materials on account
of increased production of saleable steel, and price of imported
coal, zinc and imported coke.
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