Tisco took a further stride up today after rallying 4.3% on Wednesday on the strength of buoyant Q4 results.

Early today, the scrip of the Tata group flagship and steel major edged up 2.7% to Rs 157.10 on BSE. The scrip hit a high of Rs 158 earlier. Around 5.7 lakh Tisco shares were traded on BSE in just 10 minutes of trading.

Tisco had jumped up 4.3% to Rs 152.95  on Thursday after the steel major reported a surge in Q4 net profit during the latter part of the trading session.

From Rs 142.35 on 27 May 2003, the stock has climbed 10.3% in just three trading sessions to the current Rs 157.10. The stock has been on a sustained rise having risen 22.9% in just over a month from Rs 127.75 on 24 April 2003.

For Q4, Tisco recorded a massive 283% rise in net profit to Rs 469.08 crore (Rs 122.47 crore) on a 39.5% increase in net sales to Rs 2,664.76 crore (Rs 1,911.48 crore). Q4 net profit as well as net sales beat projections made by a capitalmarket.com poll - a rise of 177% to 252% in net profit to Rs 339.5-431 crore and net sales of Rs 2,459 crore-2,555.3 crore.

For FY 2002-03, Tisco recorded a 394% rise in net profit to Rs 1,012.31 crore (Rs 204.90 crore) on a 29.3% increase in total income to Rs 8,771.71 crore (Rs 6,783.12 crore). On a consolidated basis, the group posted a huge 428% increase in net profit to Rs 1,021.77 crore (Rs 193.57 crore) on a 22.3% rise in total income to Rs 9,183.74 crore (Rs 7,511.36 crore).

Increase in sales realisations due to firm product prices and a higher share of value added products boosted Q4 results. A surge in exports also aided the strong growth. Tata Steel reported an impressive 144% growth in exports to Rs 422.15 crore in the quarter ended 31 March 2003. As a result, the share of exports (in sales, net of excise duties) jumped to 15.8% in the quarter from 9.0% in the previous corresponding quarter. Exports in US$ jumped by 152% to US$ 88.73 million.

Cost cutting with a drop in interest costs also aided the performance. Interest costs fell 9% to Rs 57.82 crore in Q4 from Rs 63.29 crore. For FY 2002-03, interest costs fell 18% to Rs 304.82 crore from Rs 369.75 crore.

Analysts remain bullish on Tisco due to the company's focus on increasing the share of value added products. Tisco is among the lowest cost producers of steel in the world.

The bullishness over Tisco stems from expectations of a recovery in domestic steel demand. The government's thrust on infrastructure in the Union Budget for 2003-04 has played a major part in boosting these expectations. Principally, investments will be made in railways, airports and sea ports through an innovative funding mechanism.

The stock was also boosted by a liberal dividend of Rs 8 per share announced by Tisco.