Robust Growth on Strong Demand - TATA Steel Q3

Tata Steel Ltd, the world's No.8 steelmaker by output, glided past forecasts with quarterly profit more than doubling at its Indian operations on strong demand from the auto and construction sectors.

Tata Steel's first rise in quarterly profit for its Indian operations this fiscal year comes on the back of a 49 percent jump in sales volumes, which account for a quarter of its global capacity of about 30 million tonnes.

Tata Steel will report consolidated quarterly results, including its European unit Corus, next month.

Tata Steel shares extended gains to 5.3 percent to the day's high of 588.4 rupees after the results. The stock, valued at $11.7 billion, nearly trebled last year, easily beating an 81 percent gain on the main index.

Tata Steel said standalone net profit rose to 11.92 billion rupees ($258 million) for the fiscal third-quarter to end-December, from 4.66 billion rupees a year ago.

Net sales rose to 63.07 billion rupees from 47.51 billion a year earlier.

A Reuters poll of 12 analysts had estimated standalone net profit of 10 billion rupees on net sales of 58.3 billion rupees.

Global steel production fell 8 percent in 2009 as demand from key industries shrank amidst a global economic downturn. As economies improve and steel stocks are run down, demand is forecast to rise about 10 percent this year.