Tata Steel Ltd the world's sixth-largest steel maker, has reported a 56.4 percent fall in December quarter profits from its Indian operations as volumes dropped.
The company, which earlier in the week shed 3500 jobs at its Corus subsidiary in Europe, said standalone net profits fell to 4.66 billion rupees ($95.5 million) for the fiscal third quarter ended December, down from 10.7 billion reported a year earlier.
Net sales fell to 47.36 billion rupees from 49.28 billion.
Tata Steel mines its own iron ore and buys a third of its coking coal needs; but long-term coking coal prices surged to $300 a ton, while iron-ore prices almost doubled in the year started April 1.
Deepening concerns about the economic slump are lowering demand for steel worldwide and analysts suggest that this is unlikely to improve this quarter with prices showing no signs of improvement.
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