Mumbai: Tata Steel, the world's sixth largest steel producer, has announced a near three-fold rise in its consolidated net profit for the 2007-08 financial year, following the purchase of Anglo-Dutch steelmaker Corus.

The Tata Steel group reported a net profit of Rs12,321.76 crore ($2.9 billion) for the year ended 31 March 2008, against Rs4,165.61 crore in the previous year.

The consolidated results include Corus and its other operations in Southeast Asia.

Consolidated net profit for fiscal fourth quarter, , which did not include Corus, fell to Rs1,274 crore ($298 million) from Rs1,420 crore in the previous quarter ended 31 December.

The company is now close to the country's most valuable company Reliance Industries (RIL), which had consolidated revenues of Rs1,37,147 crore in FY08.

Buoyant steel prices have also made Tata Steel the second-most profitable company with a consolidated net profit of over Rs12,350 crore during FY08.

Tata Steel's consolidated net sales for the fiscal year rose more than five times to Rs1,31,540 crore.

Tata Steel, which runs a 5 million tonne steel mill in India, plans to ramp up capacity to 10 million tonnes by 2010.

The board of directors of the company has recommended a dividend of 160 per cent for the full year. The board also recommended a dividend of two per cent on cumulative convertible preference shares (CCPS) of Rs100 each payable on a pro-rata basis from the date of allotment of CCPS, ie, 18 January to 31 March.

B. Muthuraman, managing director of Tata Steel, said the group vision was to set a global benchmark in value creation and to increase the return on capital to 30 per cent by 2012.

While boosting domestic base, Tata Steel is also looking for acquisitions in primary steel making countries rich in raw materials. ''Our aspiration in due course is to become a 50-million tonne plus steel company.'' Muthuraman said, adding, ''Our bearings and tubular divisions are working on products for the Tata Nano.''

Muthuraman said the country imported around six million tonnes of steel last year and he expects this to go up to 8-9 million tonnes this year. Even if the economy grows more sluggish than expected, there will be still be a demand-supply gap and this would boost prices, he said.

Global steel prices have risen by almost a half this year and are expected to extend gains in the second half of 2008 as demand remains firm despite surging prices of raw materials such as iron ore and coal.