According to the unaudited consolidated financial results released by Indian steelmaker Tata Steel Group (Tata Group) for the first quarter ended on June 30 of the current Indian fiscal year, the company's loss after taxation totaled Rupees 22.090 billion (approx. US$452 million), down from a profit after tax of Rupees 39.010 billion recorded in the corresponding period of the previous fiscal year.
In the first quarter of the current fiscal year, Tata Group's consolidated turnover came to Rupees 232.92 billion (approx. US$4.768 billion), decreasing by 46.45 percent year on year, due to the drop in sales volume recorded by Tata Steel Europe (TSE), which includes Corus, as well as the drop in prices in India and Southeast Asia.
In the period in question, the group's steel deliveries amounted to 5.443 million mt, decreasing by 36.73 percent year on year, mainly due to the fall in sales volume registered by TSE affected by the demand contraction in Europe on account of the global economic downturn. Meanwhile, the sales volume of Tata Group's Indian operations was 22 percent higher during Q1 FY 2009-10 compared to Q1 FY 2008-09.
In the first quarter of FY 2009-10, TSE's turnover declined by 53.79 percent year on year to Rupees 152.28 billion (US$3.11 billion). In the period in question, TSE's liquid steel production was 2.8 million mt, down 46.15 percent, while its steel deliveries were 3.3 million mt, down 47.61 percent, both compared to Q1 FY 2008-09.
Commenting on the results, Tata Steel's managing director B. Muthuraman said, "The results of Tata Steel Group for the quarter ended June reflect the impact of the global economic downturn, particularly in the developed markets. The group is currently undertaking several restructuring initiatives internally to not only weather the current storm but to emerge much stronger in the near future. The global recovery is expected to be slow and the company will continue to focus on operating performance and liquidity management. Overall, Tata Steel Group is in a relatively good position because of our wide geographic reach and our strong position in the growing Indian market."