Tata Steel Declared Consolidated Group Financial Results for H1, Q2 – Tata Steel limited had declared consolidated group financial results for H1 and Q2 ended on 30th September, 2009. Some of the group performance foregrounds are:
1. Improvising market conditions in the Q2 were manifested by total group steel deliveries arising 17% to 6.22 million tonnes from 5.34 million tonnes in Q1 FY’10 and by a 9% increase in group consolidated turnover i.e. net sales along with other operating income to INR 25395 crores.
2. Due to the worst downturn occurred in the past, Tata Steel Europe has moved into positive EBITDA at the beginning of third quarter. The cost saving advantages accomplished in the first half of quarter from the Weathering the Storm and Fit for Future programs at TSE numbered approx. INR 3750 crores and the objective of recognizing savings of more than GBP 1 billion this financial fiscal is on its right track.
3. Contempt to the worst trading period for generations, the group analyzed profits on a consolidated EBITDA basis all throughout the first half, doubling benefits in Q2 FY’10 to INR 402 crores from INR 204 crores in Q1 FY’10. The Q2 computed in detail were lesser than they would differently have been due to number of on-off considerations.
4. The group goes on in delighting a strong liquidity position of INR 17893 crores as at the end of September 2009 and tight working capital management all across geographies. The group net debt at the end of September 2009 endured at INR 50745 crores.
The Vice Chairman of Tata Steel Group Mr. B Muthuraman stated that, “The economic crisis has affected TATA Steel’s operations as much as those of any other major world steel company, but this should not be allowed to obscure the fact that the long term fundamentals for the steel industry remain good. Emerging economies continue to require more and more basic materials such as steel, and steel companies that harness the best in global technology will reap the most benefit from this growth. I take comfort from the fact that rigorous management of working capital and expenditure has led to the outlook for our operations and for our financial performance being much brighter now than they were just a few months ago.”
Besides this, Managing director and CEO of Tata Steel Group Mr. Kirby Adams commenced that, “We took timely action during the exceptionally difficult first-half trading period, and I am pleased to report that the second half of this financial year will look entirely different. Revenues will be higher, costs lower, restructuring charges fewer and the position of Teesside Cast Products resolved. We are on track to realize more than GBP 1 billion in cost savings this year, and because of that we are also on track to meet our H2 financial targets. Steel demand in Europe and North America started to recover from exceptionally low levels during Q2. While we expect that trend to continue, the recovery remains fragile, particularly in the UK and in construction markets. But we believe that we are now over the worst in Europe and can look forward to a return to positive financial performance.”
In addition, Managing director of Tata Steel Mr. Hemant Nerurkar told, “Increased capacity in India enabled the Group to take advantage of continuing demand growth. Our plans are on course to raise capacity at Jamshedpur by almost 50% in the next two years, so we are in a better position than any other global steelmaker to benefit from Indian steel demand, which from next year is expected to start growing faster than in any other major emerging economy. When the Jamshedpur expansion is complete, low-cost production in India will move up from less than 18% of the Group total at the time of the Corus acquisition to at least a third. We are continuing to invest in other fast-growing regions, such as South East Asia, where the Group is also strongly positioned.”
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