India-headquartered steel giant Tata Steel Group has issued its group financial results including Tata Steel Europe for the first quarter ended June 30 of the financial year 2014-15.
In the first quarter, Tata Steel Group's net profit amounted to INR 3.37 billion ($55 million), down 70 percent compared to the same quarter of the previous financial year, due to INR 15.7 billion impairment on its 35 percent stake in Benga coal mine in Mozambique. The group's first quarter sales increased by 11 percent year on year to INR 361.43 billion ($5.9 billion).
During the April-June quarter, steel deliveries of the group amounted to 6.46 million mt, increasing by 6.3 percent year on year, with deliveries from the European operations rising by two percent to 3,2 million mt and deliveries from the Indian operations up five percent to 2.1 million mt, both compared to the same period of the previous financial year.
According to Tata Steel's statement, despite a reduction in the market spread compared with the year-earlier quarter, Tata Steel Europe's profitability improved, while European steelmakers have been contending this year with rising imports, which are limiting their ability to take advantage of growing European demand. Meanwhile, Indian operations continued to perform strongly and improved compared to the first quarter of the previous financial year.