Tata Steel published stand alone audited financial results for the six months ended 30^th September 2007 on 26^th October 2007. The enclosed consolidated financial results of the Company for the six months ended 30^th September, 2007 were reviewed by the auditors and approved by the Board of Directors of the Company.

Highlights for the six months ended 30^th September 2007:

• Profit before exceptional items and taxes for the six months ended 30^th September 2007 was Rs.5,483 crores against Rs.3,227 crores for the same period of the last financial year.

• Diluted EPS before exceptional items (not annualized) for the six months ended 30^th September 2007 was Rs.54.59 against Rs.39.41 for the same period in the last financial year.

Consolidated Financial Results for the Quarter ended /Six Months ended on 30^th September,2007

The previous period figures do not include Corus and the current period includes financial results of Corus, reviewed by the auditors.

Report on Financial performance

• Income from Operations

Total income for six months ended 30^th September 2007, amounted to Rs. 63,872 cr against Rs.12,020 cr in the same period previous year. The increase comprise mainly of Rs.49,809 cr of Corus income and increases of Rs. 866 cr in Indian operations, Rs.1,237 cr in Nat Steel and Rs.512 cr in Tata Steel, Thailand.

• Total Expenditure

Total expenditure for the six months ended 30^th September 2007 amounted to Rs.56,112 cr against Rs.8,665 cr during the previous years. The increase is primarily on account of inclusion of expenditure of Corus during the current year.

• Material cost

  The material cost for the six months ended 30^th September 2007 was Rs.28, 338 cr. against Rs.4,076 cr. during the previous year. The increase is principally due to inclusion of material cost of Rs.23,406 cr. of Corus, increase in NatSteel by Rs.1,122 cr., increase in Tata Steel Thailand by around Rs.356 cr., and increase in the Indian operations by Rs.54 cr. The increases in the material cost of NatSteel and Tata Steel Thailand are mainly due to the increase in the volume of operations and an increase in the scrap prices. The increases in the material cost of Indian operations were mainly due to use of imported coke.

• Other Expenses

The other expenditure for the six months ended 30^th September 2007 was Rs.17,692 crores against Rs.3,234 crores for the same period last financial year. The increase is primarily due to the inclusion of Other Expenditure of Corus of around Rs.13,808 crores.

The details of the major items of other expenditure are shown below for the quarter ended / six months ended 30^th September 2007.

Figs. in Rs. Crores

• Interest

The interest expenditure for the six months ending 30^th September 2007 amounted to Rs.2,277 cr against Rs.128 cr during the previous year. The increase is mainly on account of interest charges on the borrowings to fund the acquisition of Corus. The breakup of interest charges, major unit wise, is shown in the following table:

Figs. in Rs. Crores

• Exceptional items

Results for the six months ending 30^th September 2007 include gain from exceptional items of Rs.6,354 crores mainly comprised of actuarial gain on funds for employee benefits of Rs.5,971 crores. The actuarial gain on funds for employee benefits represents increase in value of investments held by pension trusts arising out of increase in yield rates on bonds.

The Profit after tax inclusive of share of profits of associates and net of minority interest, amounted to Rs.9,703 cr for the six months ending 30^th September 2007 compared to Rs.2,158 cr for the corresponding period of the previous year.

Earnings per share for relevant periods are given below:

(Not annualized)