MUMBAI (Commodity Online): Tata Steel reported a net loss of Rs 2,719.8 crore for Q2 of 2009-10 as against a net profit of Rs 4,771.7 crore in the same quarter last fiscal owing to lower price and production of alloy and the poor show at Teesside Cast Products plant (TCP) in England.

Lower price and production are the reasons for the company’s net loss. But, the primary reason will be TCP, which adversely impacted the EBIDTA by around Rs 800 crore for the quarter alone, Tata Steel chief financial officer Kaushik Chatterjee said in a press note.

Tata Steel, however, is pinning hope on increased sales to see a trend reversal in the second half of the current fiscal as it anticipates stability in price and no likelihood of raising the capacity utilisation level, from 75% now, at its European operation.

Tata Steel Europe returned to the positive EBIDTA level in October, and the company hopes that it would remain positive in the third and fourth quarters of the current fiscal as well due to volume growth and cost reduction.

While production at Tata Steel Europe was at 7.1 million tonnes in H1 of 2009-10 as compared to 12 million tonnes in the same period last fiscal, Tata Steel India had produced 3.14 million tonnes in the first half, up from 2.61 million tonnes in the first half of the previous fiscal.

Revenue at Tata Steel Europe increased to $3.5 billion in the second quarter as compared to $3.2 billion in the first quarter.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook