Tata Steel's after-tax profit at record $2 billion in FY'11

Tata Steel Group has recorded a profit after tax (PBT) of Rs8,983 crore ($2,015 million) for the financial year 2010-11, an improvement of Rs10,992 crore ($2,466 million) over the loss of Rs2,009 crore ($451 million) in FY'10.

Earnings before interest, tax, depreciation and amortisation, stood at Rs17,103 crore ($3,836 million) for the full
year, an 83 per cent increase from the EBITDA of Rs9,340 crore ($2,095 million) recorded in FY'10.

The Indian operations of Tata Steel reported a profit after tax of Rs6,866 crore ($1,540 million) and EBITDA of Rs12,225 crore ($2,742 million) -  the highest ever - on the back of
higher volumes, improved product-mix and higher realisations, the company said in a release.

"The Indian operations registered a 36 per cent increase in annual profits because of favourable market conditions and the untiring efforts of employees to exceed targets," Tata Steel managing director HM Nerurkar said.

"We enjoy an excellent position in India compared to our global peers to counter cost pressures, given the growing domestic market, a higher proportion of value-added products and a sizeable increase in capacity by the end of the financial year," he added.

The European operations also recorded robust improvement, posting an EBITDA of Rs4,204 crore ($943 million), an increase of Rs5,555 crore ($1,246 million) over
FY'10. The company attributed the gains to higher sales and realisations as also cost-cutting measures initiated in the aftermath of the financial crisis.