Companies

Tata Steel Q4 net down 90% on lower Europe demand

Our Bureau Mumbai | Updated on March 12, 2018

Nerurkar

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Tata Steel reported a 90 per cent drop in consolidated fourth-quarter net profit at Rs 433 crore against Rs 4,176 crore a year ago. The company was impacted because of higher cost of raw materials and less demand for steel in Europe.

In the same quarter last year, the steel maker's net profit was buoyed by a one time exceptional gain of Rs 2,279 crore on account of restructuring due to sale of Teesside Cast Products (TCP).

The company's Europe CEO, Dr Karl-Ulrich Kohler, said continuing Euro Zone crisis kept EU steel demand well below pre-crisis levels in the March quarter. Net sales for the quarter were marginally up at Rs 33,860 crore (Rs 33,443 crore in Q4 FY11).

For the full year ended March 31, the steel maker posted lower net profit of Rs 5,390 crore against Rs 8,983 crore, a year ago.

The profit is after taxes, minority interest and share of profit of associates.

Consolidated figures combine the financial performance of Tata Steel India Ltd, Tata Steel Europe Ltd (formerly Corus), Natsteel and Tata Steel Thailand.

The company's India business (turnover) contributed about 26 per cent to the total business. Net profit on a standalone basis (for Tata Steel India) was Rs 1,560 crore against Rs 1,708 crore a year ago.

“We have a target to produce and sell 1 million tonnes more than we did in the year ago period,” Mr H.M. Nerurkar, Managing Director, said.

The board recommended a dividend of Rs. 12 a share.

Shares of Tata Steel closed down 1.48 per cent at Rs 399. 85 on the BSE on Friday.

>satyanarayan.iyer@thehindu.co.in

Published on May 18, 2012

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