On August 12, India-headquartered steel giant Tata Steel Group issued its financial results for the second quarter of 2010 or the first quarter of the Indian financial year ended on June 30, 2010, stating that the recovery of European operations and the high performance of Indian operations continued during the quarter.
Net income was Rupees 18.25 billion ($393 million) in the three months ended June 30, compared with a net loss of Rupees 22.09 billion in the same quarter a year earlier. The company also pointed out that turnover saw an increase of 16.75 percent year on year to Rupees 271.95 billion ($5.86 billion) from Rupees 232.9 billion. Group EBITDA in the period in question was Rupees 45.27 billion ($975 million) compared to Rupees 2.04 million ($44 million) in the same period of 2009.
Meanwhile, EBITDA of Tata Steel Europe (Corus) was Rupees 13.63 billion ($293 million) in the three months ended June 30, compared with a loss of Rupees 1.85 billion in the corresponding quarter of the previous year. The company also pointed out that Corus' turnover saw an increase of 16 percent to Rupees 177.11 billion ($3.81 billion) compared to the corresponding period of 2009.
Tata Steel Group's steel deliveries rose 13 percent to 6.05 million mt compared to the same period of 2009 as capacity utilization improved in Europe.
"In April-June the recovery of the European operations continued," Tata Steel Europe managing director and CEO Kirby Adams said, adding that the improved performance of Corus was the result of higher selling prices and the fact that the full impact of recent raw materials price rises on profitability had yet to be felt.
Tata Steel managing director H.M. Nerurkar said: "Steel demand and prices have both recovered strongly in the last two quarters. While the recent surge in imports affected our sales to some extent, the year should see a strong performance from our Indian operations."