Tata Steel reports net loss in Q2

Tata Steel has reported a consolidated net loss of Rs 363.93 crore for the second quarter ended September 30, 2012 as against a net profit of Rs 212.43 crore for the same period last year.

The company reported consolidated net sales of Rs 33,867.32 crore for the given quarter against Rs 32,507.45 crore last year. Earnings before interest, tax, depreciation and ammortisation (EBITDA) stood at Rs 2,452.4 crore versus Rs 3,021 crore. EBITDA margins on a consolidated basis was 7.2%.

On a standalone basis, Tata Steel India's net sales grew to Rs 9,034.20 crore for the second quarter versus Rs 8,142.19 crore, corresponding quarter last year. Its standalone net profit fell to Rs 1350.81 crore as against Rs 1495.22 crore. EBITDA for Tata Steel India was Rs 2669 crore. The profit fell on account of lower steel prices in India and higher raw material costs.

The costs of raw materials went up to Rs 2537.16 crore against Rs 1889.04 crore last year on account of higher coal prices. Steel prices over the second quarter fell by 4-6% because of falling international rates and lacklustre demand growth.

H.M. Nerurkar, managing director, Tata Steel, said, "The Indian operations continued their steady performance against a backdrop of lacklustre demand in the marketplace and increasing imports."

Koushik Chatterjee, group CFO, Tata Steel, said, "We will be commissioning the coke oven battery in the current quarter and the cost impact will be in our favour from the fourth quarter."
Talking on the expansion plans at Tata Steel's Odisha 3 million ton steel plant, Nerurkar said that the plant is progressing on schedule and should start by the middle of 2014-15.

Source: ISMW

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