Tata Steel, the world's seventh largest steel company, has said its consolidated net profit after tax increased 8.5 percent to 19.79 billion rupees ($440 million) for the second quarter higher than the profit of 18.25 billion rupees ($406 million) in Q1 FY’11.
This net profit was against a net loss of 27.19 billion rupees in the same period last year.
Group consolidated turnover rose by 14.53 billion rupees or 5 percent to 286.46 billion rupees in Q2 FY’11, compared with Q1 FY’11 on increased deliveries in India and price improvements in other geographies.
Group EBITDA in Q2 FY’11 at 44.97 billion rupees matched the level recorded in Q1 FY’11, despite steel prices falling in India and higher raw materials prices affecting the financial performance of both the Indian and European operations.
The Group’s steel deliveries fell 1 percent to 5.82 million tonnes in quarter over quarter. Lower deliveries at the European operations during the summer months were largely made up by higher deliveries from Tata Steel India and Tata Steel Thailand.
“We registered strong sales in India in the second quarter, aided by growing strength in industrial activity and intensifying demand from the infrastructure, construction and auto sectors. While we are confident of a fairly strong performance this financial year, we are focusing on the introduction of higher value-added products to our existing product range in order to ensure we retain market leadership in future,” said HM Nerurkar, Managing Director of Tata Steel.
“We now have a sound platform on which to strengthen our recovery and to develop our product and service differentiation initiatives. But, with an uncertain demand outlook in Europe, our operations also remain focused on cost control and stable manufacturing,” said Karl-Ulrich Köhler, MD & CEO of Tata Steel Europe with regard to its European operations.
Group sales Q2 sales up 13 percent to 286.46 billion rupees from 253.95 billion rupees of Q2 FY’10 and 5 percent up from the 271.94 crores of Q1 FY’11.
Turnover at Tata Steel India Q2 sales up 25 percent to 71.07 billion rupees from 56.92 billion rupees of Q2 FY’10.