Tata Steel Q2 net dips 49% to Rs 903 cr

Tata Steel’s net profit almost halved for the quarter ended September 30, 2009 at Rs 902.9 crore as compared to Rs 1,787.8 crore in the same quarter last fiscal, the best performing quarter in the steel maker’s history.

Tata Steel’s net profit almost halved for the quarter ended September 30, 2009 at Rs 902.9 crore as compared to Rs 1,787.8 crore in the same quarter last fiscal, the best performing quarter in the steel maker’s history.

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Attributing the 49.5 per cent dip in net profit to fall in price of the alloy, Tata Steel’s group chief financial officer Koushik Chatterjee said, as a result, realistaion came down to Rs 29,900 a tonne in the quarter ended September 30, 2009 from Rs 40,000 per tonne a year ago.

The sharp dip in ferro alloys price, to the tune of Rs 60,000 a tonne in September this year over the same month last year, has also dug a Rs 500 crore hole in the bottomline, he said.

Chatterjee hoped that the realistaion would remain at the current level of Rs 30,000 a tonne in the remaining quarters of the current fiscal, as cost of coal has softened. Tata Steel uses captive iron ore for its Indian operation, but imports 35 per cent of coal requirement.

Total income also declined by 18.2 per cent to Rs 5,768.2 crore during the period.