Plunge by 42% to Rs 473 crore seen in Tata Steel
A 42 pct plunge was forwarded by Tata Steel, (among the top 10 steel companies in the World), in its consolidated profit at Rs 473 crore during the third quarter of FY10 over the corresponding period last year. Furthermore, a decline from Rs 33,199 crore to Rs 26,202 crore was seen in the company’s total income from operations, during the period under review, which occurred mainly because of to a fall in demand in US and Europe.
The trend of previous quarters was reversed by the company by returning to positive earnings before interest, taxation, depreciation and amortization (EBITDA), due to lower costs, higher prices and benefits from its restructuring initiatives.
The company’s consolidated EBITDA was Rs 3,401 crore. Out of this, an EBITDA of Rs 660 crore was reported by Tata Steel Europe, which contributes two-thirds of Tata Steel's total capacity, as compared to an EBITDA loss of Rs 1,802 crore.
It was specified by Kirby Adams, chief at Tata Steel Europe that there is a slow improvement in capacity utilization in the US and the Europe. For Q3, Tata Steel Europe's capacity utilization was over 80%, up from 75% and is expected to be about 80% in the fourth quarter of FY10.
The company, since then has been trying to reserve orders to operate the plant; however it was not that successful.
The loss of the unit was at $222 million between April and December of 2009. There are nearly 1,600 employees working with Teesside.
A sum of $12.9 billion was the company's consolidated gross debt. It was after market hours that Tata Steel announced the results. Its shares on Tuesday closed at Rs 549 on the Bombay Stock Exchange (BSE), up by Rs 12.
