JOIN USTata Steel loss at Rs 2,000 cr
Total Income has decreased from Rs 1,47,329 crore for the year ended March 31, 2009 to Rs 1,02,393 crore for the year ended March 31, 2010. The loss in sales took a heavy toll on the company’s bottom line.
Tata Steel, on a consolidated basis sold 24.3 million tonnes of steel in 2009-10, 15 per cent lower than 28.5 million tonnes sold in the previous year.
Global demand
Even as sluggish global demand weighed on Tata Steel Europe (formerly Corus Inc.) operations, the company pointed out that it incurred a restructuring costs of Rs 1,683.72 crore on Corus. Though year as a whole, Tata Steel showed a loss, it turned around in the second half of the last financial year with consolidated EBITDA of Rs 8,734 crore almost 15 times higher than the Rs 606 crore reported in H1FY’10. As such, the Group’s EBITDA in the fourth quarter of fiscal 2010 improved as demand rose from automobile and construction companies and consequently, Corus increased prices. Accordingly, the fourth quarter at Rs 5,333 crore rose 57 per cent sequentially over Q3’FY10’s figure of (Rs 3,401 crore), pointed out CFO Koushik Chatterjee.
Further, Tata Steel reported an EBITDA margin of 44 per cent in H2FY’10, which is up from 33 per cent in H1’FY10 on the strength of robust demand, which led to higher prices and the Jamshedpur plant operating at higher than rated capacity, said Chatterjee.
The company’s stand-alone results show a net profit of Rs 5,046.80 crore for the year ended March 31, 2010 as compared to Rs 5,201.74 crore for the year ended March 31, 2009, while total income rose to Rs 25,875.77 crore from Rs 24,624.04 crore for the year ended March 31, 2009. Further, Tata Steel at its board meeting held this day recommended a dividend of Rs 8 per share for the financial year 2009-10.