India's Tata Steel Q4 net profit dives 90 percent

India's Tata Steel, the world's seventh-largest steelmaker, said Friday quarterly net profit plunged 90 percent from a year earlier, hit by high input costs and falling demand in its key European market.

Tata Steel reported consolidated net profit slid to 4.33 billion rupees ($80 million) for the three months to March from 41.76 billion rupees in the same period a year earlier.

Sales rose by just over one percent to 339 billion rupees from 338 billion rupees reported a year go.

"Steel demand in emerging markets increased but it dropped in Europe towards the end of the quarter on the back of the eurozone crisis," Tata Steel's chief financial officer Koushik Chatterjee told reporters in Mumbai.

High costs of important raw materials such as iron ore and coal also hurt operations, Chatterjee added.

Steelmakers around the world have been suffering from a slowdown in demand as industrial growth loses pace in emerging economies such as India and China and growth remains sluggish in advanced economies.

Europe accounts for around two-thirds of sales and production for the steelmaker which has an annual capacity of some 28 million tonnes.

Chatterjee forecast that global steel demand would improve in the current fiscal year with raw material prices stabilising.

Profit in the fourth quarter a year earlier was boosted by a one-time gain from the sale of a plant in Britain. Stripping out the gain, the drop in quarterly net profit would have been 77 percent, the company said.

The company, part of the sprawling Tata Group conglomerate, became one of the world's biggest steelmakers after purchasing Anglo-Dutch company Corus for $13.7 billion in 2007.

Europe-based Corus was rebranded as Tata Steel in September 2010.

For the full year to March, Tata Steel said its profit tumbled by 40 percent to 53.89 billion rupees ($997 million) from 89.83 billion rupees a year earlier.

Chatterjee said capital expenditure would rise to $2.5 billion this year from $2.2 billion last year.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Sandigan OKs hospital stay for GMA co-accused
    Sandigan OKs hospital stay for GMA co-accused

    The Sandiganbayan has allowed a government official, accused with plunder along with former President and now Pampanga Rep. Gloria Macapagal-Arroyo to undergo a medical procedure at a hospital tomorrow. The anti-graft court permitted former Philippine Charity Sweepstakes Office (PCSO) board member Benigno Aguas to undergo a cardiopulmonary/endocrine clearance at the St. Luke’s Medical Center in Quezon City. …

  • Sandigan recommends executive clemency for ex-envoy
    Sandigan recommends executive clemency for ex-envoy

    The Sandiganbayan has recommended executive clemency for a former Philippine ambassador to Nigeria who was sentenced to 52 years for malversation of public funds. The Sandiganbayan First Division found Masaranga Umpa guilty of misusing the Assistance-To-Nationals Stand-by Funds totaling $80,478.80 in 2007, but the anti-graft court said the former assemblyman from Lanao del Norte should be pardoned. …

  • Stargazing at the mall highlights Earth Hour
    Stargazing at the mall highlights Earth Hour

    It was a night of stargazing in 58 SM Supermalls all over the country last night as these establishments participated in Earth Hour, an annual worldwide movement encouraging communities and establishments to switch off lights for one hour to raise global awareness of overuse of non-renewable resources. The Philippines has been an active participant of Earth Hour since 2008. Last night, in the province of Bulacan, for instance, all parishes, diocesan institutions, schools and household …

  • Payanig privatization hit
    Payanig privatization hit

    BLEMP Commercial of the Philippines, Inc. (BLEMP) denounced the recent announcement of the Presidential Commission on Good Government (PCGG) to privatize the 18.4-hectare “Payanig sa Pasig” property. In a statement sent to The STAR, BLEMP lawyer Dennis Manalo said the PCGG has no right to auction the property because it has no valid title and is not in possession. The PCGG has not paid a single centavo in real property taxes for the property, he said. He narrated that it was in the early 70s …

  • New species of tarantula found
    New species of tarantula found

    Scientists from the Museum of Natural History (MNH) of the University of the Philippines-Los Baños have discovered a new species of cave-dwelling tarantula on an island off the coast of Quezon. The new species of the spider, Phlogiellus kwebaburdeos, was described in the recent issue of the Philippine Journal of Systematic Biology by MNH curators for spiders Aimee Lynn Dupo and Alberto Barrion along with their former student Joseph Rasalan. The tarantula was discovered by Rasalan during one …

  • Palm Sunday: Do not add to suffering of others
    Palm Sunday: Do not add to suffering of others

    As Christendom enters Holy Week today, Palm Sunday, an official of the Catholic Bishops’ Conference of the Philippines (CBCP) yesterday called on the faithful not to add to the sufferings of their fellowmen. Jerome Secillano, executive secretary of the CBCP-Episcopal Commission on Public Affairs (ECPA), said that while Palm Sunday is oftentimes remembered as the glorious arrival of Jesus Christ in Jerusalem, it also signals the start of the Holy Week that tells of His suffering, death and …

  • Miriam pushes tougher graft law
    Miriam pushes tougher graft law

    Sen. Miriam Defensor-Santiago has filed a bill that would make public officials liable for violations of the Anti-Graft and Corrupt Practices Act even if they are elected to a fresh term or a new position. In filing Senate Bill 2716, Santiago sought to address what she said was the doctrine of condonation in Philippine jurisprudence brought about by the 2010 case of Salumbides vs. Ombudsman. “By merely asserting the doctrine of condonation, erring elective officials are automatically given a …

  • Phl hits back at China over sea infra work
    Phl hits back at China over sea infra work

    The Philippines assailed China yesterday for contesting Manila’s planned repair and maintenance works on some islands in the West Philippine Sea, saying they are “in no way comparable” to the Asian power’s massive reclamation activities which are in violation of international laws. “The Philippines’ possible undertaking of necessary maintenance and repairs on its existing facilities in the West Philippine Sea, over which the Philippines rightfully exercises sovereignty, sovereign rights and …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options