Indian giant Tata Steel: Profitability in Europe improved

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Source: Tata Steel Limited

Mumbai, India — Indian steel giant Tata Steel has recently declared its Consolidated Financial Results for the quarter ended June 30, 2014. In Europe, despite a reduction in the market spread compared with the year-earlier quarter, profitability improved. Production and deliveries were similar to the year-before level.

European steelmakers have been contending this year with rising imports, which are limiting their ability to take advantage of growing European demand. The European operations pursued their objective of supporting customer success in their own markets through product and service improvement. Ten new products have been launched so far this year, such as a new automotive steel grade which combines strength and formability, making it ideal for the crash-protection structure of vehicles. These efforts have resulted in the proportion of differentiated products in the operations’ sales rising by around a fifth compared to last year.

The Company started processing centres in the Netherlands and Germany during the quarter to support customers by supplying them with lighter, stronger steels. Both facilities will be supporting customers in Germany – a strategic market for Tata Steel.

The focus on costs was also maintained, leading to year-on-year savings of €37,4 million in Q1 financial year ’15.

  • Liquid steel production in Q1 financial year ’15 was virtually unchanged at 3.7 million tonnes from the level in Q1 financial year ’14. Deliveries increased by 2 per cent to 3.2 million in Q1 financial year ’15 from 3.14 million tonnes in Q1 financial year ’14.
  • Turnover in Q1 financial year ’15 was Rupee 207,41 million compared to Rupee 184,32 million in Q1 financial year ’14 (100 Rupee = 1,23 €).
  • EBITDA increased by 28 per cent to Rupee 9950 million from Rupee 7770 million in Q1 financial year ’14 while the EBITDA margin improved by 58 basis points.
  • Q1 financial year ’15 EBIT improved to Rupee 1360 million versus Rupee 120 million in Q1 financial year ’14.

The full Consolidated Financial Results report can be downloaded from tatasteel.com .

Source: Tata Steel Limited