Tata Steel profits hit four-year high
Tata Steel has turned around a recent slump in profits to announce a four-year best performance.
The steel giant was backed up by a solid performance by its European and Indian operations.
Group net income climbed to 11.39 billion rupees (US$186 million) in quarter one three months ending June 30 from 5.98 billion rupees a year ago.
In figures released this week the firms said the Indian operations recorded “robust performance despite softer markets – weakening economic conditions and a seasonally weak quarter”.
Best ever production was achieved for hot metal and from the Thin Slab Casting and Rolling Plant .
While several facilities such as LD#3, the Cold Rolling Mill, the New Bar Mill and the Merchant Mill achieved best ever quarterly production, according to the figures.
In Europe the figures showed operations maintained the improvement in underlying performance on the back of upgrades at key production facilities at Port Talbot and IJmuiden in Q4 which helped strengthen the operating platform.
However, South East Asian operations were affected by a two-month shutdown for a plant upgrade in Singapore.
As a result the profitability was also affected by the sharply narrowing spread in the region witnessed during the last quarter. The Singapore operations resumed this month (August).
Tata Steel managing director HM Nerurkar 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.
“The South East Asian operations are robust and we continue to invest in improving the underlying performance.”