Tata Steel swings to Rs1,825-crore net profit in Q1 FY'11

Tata Steel, the world's seventh-largest steelmaker, has reported a consolidated net profit of Rs1,825.26 crore during the April-June 2010 quarter, against a net loss of Rs2,208.68 crore in the quarter ended June 2009.

Tata Steel Group said its fiscal first quarter (Q1 FY'11) after-tax profit (after minority interest and share of profit of associates) stood at Rs1,825 crore ($393 million) against a loss of Rs2,209 crore ($476 million) in Q1 FY'10 - an improvement of Rs4,034 crore ($869 million).

Total income of the group increased 15.99 per cent to Rs27,254.27 crore in the quarter ended June 2010 from Rs23,496.21 crore in the quarter ended June 2009.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) of the group stood at Rs4,527 crore ($975 million) against Rs204 crore ($44 million) in Q1 FY'10, an improvement of Rs4,323 crore ($931 million).

The company attributed the return to robust EBITDA levels mainly to the significant turnaround in the financial performance of the European operations and a much-improved financial performance in India.

Consolidated group turnover rose Rs3,903 crore ($840 million), or 17 per cent, to Rs27,195 crore ($5,856 million) from Rs23,292 crore ($5,016 million) in Q1 FY'10, reflecting the recovery in global steel markets.