India's Tata Steel turns Q2 net profit

12th November 2010, Comments 0 comments

India's Tata Steel, the world's seventh-largest steelmaker, on Friday posted a second-quarter net profit from a loss a year earlier, beating forecasts, as industrial demand improved.

Tata Steel's consolidated net profit for the three months to September totalled 19.78 billion rupees (449 million dollars) compared to a net loss of 27.07 billion rupees a year earlier, a company statement said.

Sales rose 11 percent to 280.9 billion rupees.

Analysts estimated Tata Steel would record a profit of 16 billion rupees.

On Friday, Tata Steel shares fell 3.96 percent or 25 rupees to 606.3 ahead of the results.

The company, part of the sprawling Tata Group conglomerate, became one of the world's biggest steelmakers after purchasing Anglo-Dutch company Corus for 13.7 billion dollars in 2007.

Tata Steel's standalone Indian operations reported net profit growth of 128 percent to 20.65 billion rupees (469 million dollars) for the three months to September, from 9.02 billion rupees a year earlier.

"We saw strong sales in India, aided by strength in industrial activity and demand from infrastructure, construction and auto sectors," said Tata Steel managing director, H.M. Nerurkar.

Tata Steel Europe, formerly known as Corus, showed profit despite weak market conditions in the September-ended quarter, it said in a press release.

"The profitability in Europe is a tribute to the cost and restructuring measures implemented in response to the financial crisis," Tata Steel Europe chief executive Karl-Ulrich Köhler, said in the statement.

Tata Steel said demand outlook in Europe however remains uncertain.

Europe-based Corus was rebranded to Tata Steel in September this year.

© 2010 AFP

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