Tata Steel crawls back to profit

Aug 12, 2010 |

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Aug. 12: Tata Steel on Thursday reported a consolidated net profit of Rs 1,825 crore for the June quarter. This is a turnaround from the loss of Rs 2,208 crore it had incurred for the same period last year. However, this is less than the market expectations. On a standalone basis, excluding Corus, Tata Steel’s profit for the quarter stood at Rs 1,579 crore. Net sales for the quarter stood at Rs 27,010 crore — up 16 per cent. The group had a net debt of Rs 45,713 crore at the end of the quarter.

For the Corus unit, operating profit fell 17 per cent compared to Q4 of FY10. The company has attributed the fall to the depreciation of the pound sterling against the Indian rupee during the quarter. “In April-June the recovery of the European operations continued. Not only was there a $692 million turnaround in Corus’ year-on-year Ebitda performance, there were also significant improvements in revenue and capacity utilisation,” said Mr Kirby Adams, Tata Steel Europe MD and CEO. The Indian operations of the firm were also affected during first quarter by a surge of steel imports from China.

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