Tata Steel, the world’s eighth largest steel-maker, on Wednesday reported its net profit in the first quarter ended June 30, 2009 fell 47 per cent as lower commodity prices hit realisations.
The company's net profit in the first quarter, excluding income from Anglo-Dutch group Corus, fell to Rs 789 crore, which was lower than analyst expectations, from Rs 1,488 crore a year earlier.
The company's sales were down 8.7 per cent to Rs 5,615 crore. Shares of Tata Steel fell by Rs 27.5 to Rs 442 before the results were announced.
B Muthuraman, Managing Director of Tata Steel said, “In the last quarter both raw material prices and steel prices had crashed. This quarter, raw material prices have fallen but steel prices have risen. We are expecting Tata Steel India’s revenues to be 22 per cent more in the second quarter of 2009.”
Tata Steel would be announcing the consolidated earnings, including data from Corus, at the end of August.
“We are going to cut down cost and increase capacity utilisation at Corus UK and Europe,” Muthuraman said. He said volumes and prices had seen a marginal recovery but the trend was similar to previous quarters in Europe.