Tata Steel reports lower than expected net profits

Tata Steel Group’s profit after tax (after minority interest and share of profit of associates) during the financial year 2011-12 (FY'12) was Rs 5,390 crores (US$1.06 billion) compared to a profit of Rs 8,983 crores (US$1.77 billion) in the financial year 2010-11 (FY'11).

The Group’s profit after tax for Q4 FY'12 was Rs 433 crores (US$85 million) compared to a loss of Rs 603 crores (US$118 million) in Q3 FY’12 and a profit of Rs 4,176 crores (US$821 million) in Q4 FY'11.

Tata Steel Managing Director Mr HM Nerurkar said: “The Indian operations registered robust performance in FY’12 amid growth concerns in the domestic market. The resilience of the Indian operations was maintained due to customer centric programmes, all-round improvement in operations and a focus on enhancing the proportion of value-added products across profit centres. Performance in FY’13 is expected to be boosted by the start-up of the brownfield expansion at Jamshedpur, where trial production has begun. Work on the greenfield project in Odisha is on track.

The South East Asian operations are expected to perform better in FY’13, on the back of cost reduction measures, a healthy order book position and product-mix improvements. I extend my appreciation to employees for their singular contribution in making this year a success against heavy odds.”

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