Ratan Tata, chairman of Tata Steel, today said the company needed to take "hard decisions" to restructure its operations as 2011-12 was a difficult year with demand for steel having slackened globally.
The comments came just a day after Tata Steel reported an 89-per cent profit in its June quarter net profit to Rs598 crore. In 2011-12, the company's profits fallen by 2.5 per cent to Rs6,696.4 crore.
Terming the financial performance of the company in the last quarter as "a matter of concern", he said Tata Steel had been through bad times before and it had the "fortitude to see itself through".
Tata was addressing shareholders at the annual general meeting (AGM) in Mumbai, his last as company chairman, as he would be demitting office in December.
Cyrus Mistry will take over as chairman by from Tata at the end of the year.
"We have to reduce cost and (be) more cost-efficient. I believe there is inherent strength in the company to overcome present challenges," he said.