Tata Steel's net profit hits $449m
Mumbai, November 13, 2010
India's Tata Steel, the world's seventh-largest steelmaker, posted a second-quarter net profit from a loss a year earlier, beating forecasts, as industrial demand improved.
Tata Steel's consolidated net profit for the three months to September totalled 19.78 billion rupees ($449 million) compared to a net loss of 27.07bn rupees a year earlier, the company said.
Sales rose 11 per cent to 280.9bn rupees. Analysts estimated the company would record a profit of 16bn rupees.
The company, part of the Tata Group conglomerate, became one of the world's biggest steelmakers after purchasing Anglo-Dutch company Corus for $13.7bn in 2007.
Tata Steel's standalone Indian operations reported net profit growth of 128pc to 20.65bn rupees for the three months to September, from 9.02bn a year earlier.
'We saw strong sales in India, aided by strength in industrial activity and demand from infrastructure, construction and auto sectors,' said managing director H M Nerurkar.
Tata Steel Europe, formerly Corus, showed profit despite weak market conditions in the September-ended quarter.
'The profitability in Europe is a tribute to the cost and restructuring measures implemented in response to the financial crisis,' Tata Steel Europe chief executive Karl-Ulrich Köhler said.
Tata Steel said Europe demand outlookm however, remains uncertain.