(RTTNews) - Tata Steel Ltd., India's largest and the world's sixth largest steel producer, reported a consolidated loss for the second-quarter, reflecting lower demand and weak performance of its European unit Corus, amid global economic meltdown.

The Mumbai-based company posted second-quarter consolidated net loss, after minority interest and share of profit of associates, of Rs.2,707.25 crore or Rs.33.74 per share, compared with a net profit of Rs. 4,771.65 crore or Rs.58.03 per share in the year-ago quarter.

The company's net revenue for the quarter declined 43% to Rs.25,269.82 crore from Rs.44,050.07 crore in the corresponding quarter last year, while other operating income totaled Rs.125.22 crore, compared with Rs.130.49 crore in the preceding year quarter.

During the quarter, revenue from Steel Business segment fell 40% to Rs.27,046.91 crore from Rs.45,426.59 crore in the corresponding quarter last year, while revenue from Others declined 48% to Rs.2,621.96 crore from Rs.5,048.27 crore in the previous year quarter. Revenue from Unallocated segment amounted to Rs.324.35 crore, down 15% from Rs.381.30 crore in the second-quarter of 2008.

The company said the improving market conditions during the quarter were demonstrated by total Group steel deliveries rising 17% to 6.22 million tonnes from 5.34 million tonnes in Q1 FY10.
Six-Month Results

For the first six months, Tata Steel reported consolidated net loss, after minority interest and share of profit of associates, of Rs.4915.93 crore, compared with a net profit of Rs.8,672.55 crore in the corresponding period last year. Total revenue, including other operating income, dropped 44% to Rs.48,687.35 crore from Rs.87,676.73 crore for the comparable period a year-ago.

As at the end of September 2009, the group's liquidity position (including undrawn credit lines) was Rs.17,893 crore or $3,720 million. The Group's net debt as on September 30, 2009 stood at Rs.50,745 crore or $10,550 million.

The cost-saving benefits achieved in the first half from the 'Weathering The Storm' and 'Fit For The Future' programmes at TSE totaled around Rs.3,750 crore or $7 80 million, and the target of realizing savings of more than GBP 1 billion this financial year was on track. The company said it was also on track to meet its H2 financial targets.

The company plans to raise capacity at its Jamshedpur facility by almost 50% in the next two years to meet the steel demand, which from next year is expected to start growing faster than in any other major emerging economy. Once the 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.

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