Query Trends : TISCO

Query: I am holding 10 shares of TISCO for sometime now, what is the future TISCO going forward? Ranjit

Thebullishtrends : TISCO share price closed on Friday at Rs.824. Asia's first and India's largest steel company TATA steel is among the lowest cost producers of steel in the world and one of the few select steel companies in the world that is EVA+.

Its captive raw material resources and the state-of-the-art 5 MTPA (million tonne per annum) plant at Jamshedpur, in Jharkhand State, India give it a competitive edge. Determined to be a major global steel player, Tata Steel has recently included in its fold NatSteel, Asia (2 MTPA) and Millennium Steel (now Tata Steel Thailand) (1.7 MTPA) creating a manufacturing network in eight markets in South East Asia and Pacific rim countries. Soon the Jamshedpur plant will expand its capacity from 5 MTPA to 7 MTPA by 2008.

The Company plans to enhance its capacity, manifold through organic growth and investments. The Company's wire manufacturing unit in Sri Lanka is known as Lanka Special Steel, while the joint venture in Thailand for limestone mining is known as Sila Eastern.

TISCO reported 3Q06 net profit of Bt332mn, down 34.5% yoy or 5.3% qoq. The main reason is due to increaser interest expenses, which rose 99.0% yoy in line with market interest rates. In addition, non-interest income dropped 25.5% yoy due to a decline in investment gains. TISCO's Net Interest Margins of TISCO is continuously declining and Loan book increased by 6% due to these reasons the earnings of TISCO may affected in this quarter also,

But the outlook is bright for TISCO, you are already having these shares hence you can continue with your holdings.