Tata Steel posts Rs2,710 crore consolidated net loss for July-September
28 November 2009
The world's sixth-largest steel maker, Tata Steel, posted worse-than-expected consolidated second-quarter losses on weak steel prices and lower production at its UK unit Corus Group.
The Mumbai-based company said its consolidated net loss in the July-September period totaled Rs2,710 crore as compared to a Rs4,770 crore net profit last year. Revenue over the same period was down 43 per cent to Rs25,270 crore.
The company said it is expecting improvement in profits in the second part of the year. According to CFO Koushik Chatterjee, the company would see a trend reversal in profit in the second half.
The company which had a net debt of $9.8 billion on 30 September plans to prepay $180 million by March next year Kaushik added. Global steel prices fell 40 per cent on an average in the three months ended 30 September as compared to last year.
Last month, the World Steel Association predicted a fall of 8.6 per cent in the demand for steel, though the figure is much lower than the 15 per cent projected in April.
Corus, accounting for more than 60 per cent of Tata Steel's output, slashed production last year following the financial crisis which resulted in tightening of liquidity and erosion in demand from automobile and construction companies.