Tata Steel Group’s Q2 net profit at Rs. 917 crore

November 13, 2013 11:48 pm | Updated 11:48 pm IST - MUMBAI:

Tata Steel Group in its consolidated financial results for the second quarter ended September 30, 2013, reported a net profit of Rs. 917 crore as compared to a net loss of Rs. 364 crore in the same period in the previous year. “This turnaround was driven by the steady ramp up of the Indian operations and improved performance at the European and South East Asian operations,” Tata Steel said.

The standalone profit was higher by 15.4 per cent at Rs. 1,559 crore against Rs. 1,351 crore.

The group’s consolidated turnover for the second quarter increased to Rs. 36,645 crore from Rs. 34,133 crore in the same period last year. The standalone income stood at Rs. 9,921 crore against Rs. 9,151 crore. “Overall market conditions weakened during the last quarter, exacerbated by heavy monsoons and the credit slowdown affecting our customers. Despite these difficult conditions, we were able to increase deliveries by 18 per cent over last year and increase market share on the back of strong customer relationships, our superior product portfolio and the strength of our distribution network,” said T. V. Narendran, Managing Director of Tata Steel India and South East Asia.

“ Our greenfield project in Odisha continues to make good progress though there have been some weather-related disruptions due to the Phailin cyclone and the subsequent floods. The South East Asian operations have stabilised and should deliver strong performance over coming quarters,” said Mr. Narendran.

“The Tata Steel Group continued to maintain its earnings momentum in spite of seasonal weakness in Europe. The year-on-year improvement is evident with a 300 basis points increase in the Group EBIDTA compared to the corresponding quarter of the previous year. The Group’s cash flows from operations for the quarter were also very strong as we continued to focus on internal initiatives including working capital and spend management,” said Koushik Chatterjee, Group Executive Director (Finance and Corporate).

“Capital expenditure on the greenfield capacity in Odisha remains the key priority for the Group’s capital deployment and we have spent around Rs. 4,500 crore in the first half on this project. We continue to maintain adequate liquidity levels backed by project financing for the planned capex and track the currency movements to calibrate our hedging policy accordingly,” Mr Chatterjee added.

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