26 November 2009
Corporate News

Tata Steel reports Consolidated Results for the first half of Financial Year 2009-10

Tata Steel Limited today declared Consolidated Group Financial Results for the first half (H1) and second quarter (Q2) ending September 30, 2009.

Group Performance Highlights:

  • Improving market conditions in the second quarter were demonstrated by total Group steel deliveries rising 17% to 6.22 million tonnes from 5.34 million tonnes in Q1 FY’10 and by a 9% rise in Group consolidated turnover (net sales plus other operating income) to Rs. 25,395 crores (US$ 5,280 million).
  • The worst of the downturn is in the past and Tata Steel Europe (TSE) moved into positive EBITDA at the start of the third quarter.  The cost-saving benefits achieved in the first half from the ‘Weathering The Storm’ and ‘Fit For The Future’ programmes at TSE totalled around Rs. 3,750 crores (US$ 780 million) and the target of realising savings of more than GBP 1 billion this financial year is on track. 
  • Despite the worst trading period for generations, the Group recorded profits on a consolidated EBITDA basis throughout the first half, doubling profits in Q2 FY’10 to Rs. 402 crores (US$ 84 million) from Rs. 204 crores (US$ 42 million) in Q1 FY’10. The Q2 figures in particular were lower than they would otherwise have been because of a number of one-off considerations.
  • The Group continues to enjoy a strong liquidity position (including undrawn credit lines) of Rs. 17,893 crores (US$ 3,720 million) as of the end of September 2009, and tight working capital management across all geographies. The Group’s net debt at the end of September 2009 stood at Rs. 50,745 crores (US$ 10,550 million).