Tata Steel Q1 net surges 90%

Written by feBureau | Mumbai | Updated: Aug 14 2013, 10:24am hrs
Tata Steel posted a 90% rise in its consolidated net profit for the April-June quarter at Rs 1,139 crore against Rs 598 crore in the same period last year on the back of robust performance by its Indian operations and an improved performance at its European operations.

The company's profitability improved considerably from the previous quarter when it reported a consolidated net loss of Rs 6,529 crore.

During the period, the company's consolidated total income declined by a marginal 3% to Rs 32,805 crore against Rs 33,821 crore last year. Ebitda increased 4.86% to Rs 3,755 crore during the quarter, while its operating margins improved to 11.5%.

Tata Steel, which has its main operations both in India and Europe, said that its group's steel deliveries were 6.08 million tonne in Q1 FY14 against 5.68 million tonnes in Q1 FY 13.

The Indian operations of the company recorded a robust performance despite softer markets, weakening economic conditions and seasonally weak quarter, the company said in a statement.

The deliveries from the Indian operations totaled to 2 million tonne during the June quarter, registering an increase of 25.8% year-on-year due to the ramp-up of capacity at Jamshedpur. However, the deliveries remained lower on a sequential basis due to seasonal effect, the company said.

The Indian operations delivered a steady performance in a subdued market environment with deliveries growing at an enhanced pace over the comparable period of last year. Our retail focus, customer relationship and brand building efforts are supporting growth despite increased competition in the market place and we are intensifying our focus on efficiency improvements and delivering enhanced value to our customers. Work on the greenfield project in Orissa continues to be in full swing. The South East Asian operations are robust and we continue to invest in improving the underlying performance, Tata Steel managing director HM Nerurkar said.

The company's European operations improved on the back of upgrades on key production facilities at Port Talbot (Wales) and IJmuiden (North Holland). Our European facilities recorded higher production volumes after we completed some major plant refurbishment last year, which gave us a more stable production platform and greater operational flexibility, added Tata Steel Europe MD & CEO Karl Ulrich Khler.