Tata Steel plunges to Rs2,209 crore loss in June quarter

Tata Steel, bogged down by poor sales from its European subsidiary Corus, today reported an after-tax loss of Rs2,209 crore for the first quarter ended 30 June 2009.

India's largest private sector steelmaker said domestic sales volume was higher by 22 per cent during Q1 FY'10 over Q1 FY'09.

Total steel deliveries of the group for the quarter dropped 37 per cent to 5.443 million tonnes from 8.603 million tonnes in the same quarter the previous year, mainly due to a fall in volume at Corus.

The group's consolidated turnover fell to Rs23,292 crore from Rs43,496 crore in the first quarter of 2008-09, primarily due to the drop in sales volume at Corus as well as a drop in prices in India and Southeast Asia.

The cost savings benefits achieved in the first quarter was around Rs2,200 crore. EBITDA during Q1 FY'10 was R.204 crore against Rs7,375 crore for the same period last year.

The drop in EBITDA was mainly attributable to the challenging economic environment caused by the global recession, especially in the UK and Europe as a whole.