Tata Steel's consolidated net profit for the second quarter ended September 30, 2011, plunged by 89 per cent to Rs.212 crore due to higher raw material cost from Rs.1,979 crore in the corresponding quarter in the last fiscal, the company said in a release.
The turnover was higher by 14.5 per cent at Rs.32,798 crore during the July-September quarter against Rs.28,646 crore in the year-ago period.
Total expenditure of the company also went up to Rs.31,157 crore during the quarter from Rs.26,052 crore in the year ago.
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Tax outgo was higher at Rs.907 crore vis-a-vis Rs.745 crore previously.
On the other hand, other income of the company was down to Rs.120 crore from Rs.814 crore.
The turnover of the company's European operations was higher by 19 per cent at Rs.21,160 crore against Rs.17,787 crore. Earnings before interest, tax, depreciation and amortisation were lower by 42.8 per cent at Rs.505 crore against Rs.883 crore. Tata Steel in India registered a turnover of Rs.8,212 crore in the quarter under review against Rs.7,107 crore in the year-ago period, a growth of 15.5 per cent. Earnings before interest, tax, depreciation, tax and amortisation were down by 16.9 per cent at Rs.2,793 crore against Rs.3,362 crore.
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Managing Director H. M. Nerurkar said in a release that the Indian operations performed strongly despite the overall soft market situation. Higher raw material prices and adverse currency movements impacted profits in the second quarter.