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Tata Steel reported flat profits at Rs 1,356 crore despite a six per cent growth in income of Rs 9,363 crore for the first quarter ended June 30. The company’s domestic sales volume rose 26 per cent to two million tonnes due to ramped up capacity in Jamshedpur. Flat products (used mainly in automotive/heavy machinery industries) volume rose 44 per cent, the company said. Its European operations (Tata Steel Europe, formerly Corus) sold 3.14 million tonnes (3.21 mt) due to soft market demand.
The company’s South-East Asian operations were affected by a two-month shutdown, the company said. Sales volume in this geography rose from 0.72 million tonnes to 0.86 million tonnes.
On a consolidated basis, the company’s net profits for the period almost doubled to Rs 1,139 crore, although income dropped by about three per cent.
The company said that Indian operations had turned in a robust performance despite softer markets, weak economic conditions and a seasonally slow quarter. There was improvement in European operations also. In the immediately preceding quarter (Q4 of FY 2013), the group had posted a loss of Rs 6,529 crore.
Tata Steel shares rose two per cent today and closed at Rs 241.15 on the BSE.
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