Leading steel maker Tata Steel Thursday said it posted a consolidated loss of Rs.2,239 crore (Rs.22.39 billion/$448 million) in the first quarter this fiscal as compared a profit of Rs.3,915 crore (Rs.39.15 billion/$783 million) in the previous corresponding period.
The losses, the Tata group company said, was due to poor demand in the US and Europe and low steel prices. Tata Steel had acquired Corus, Europe's second largest steel maker, in 2007.
In a regulatory statement, the company said its consolidated net sales fell to Rs.23,180 crore (Rs.231.8 billion/$4,636 million). This amount stood at Rs.43,375 crore (Rs.433.75 billion/$8,675 million) during the corresponding period last year.
Showing posts with label Tata Steel. Show all posts
Showing posts with label Tata Steel. Show all posts
Thursday, August 27, 2009
Wednesday, July 29, 2009
Tata Steel net profit dips 46 percent
Steel major Tata Steel's net profit fell 46.93 percent in the quarter ended June 30 to Rs.789.83 crore ($163 million) from Rs.1,488.4 crore in the like period last year.
Total income of the company decreased 8.16 percent to Rs.5,661.89 crore during the quarter from Rs.6,165.14 crore a year earlier.
The earnings per share stood at Rs.9.61 as compared to Rs.18.11 in the year-ago period.
A major drop in earnings was seen in the company's ferro alloys and minerals business with revenues dropping to Rs.357.32 crore from Rs.828.62 crore in the first quarter of 2008-09.
Total income of the company decreased 8.16 percent to Rs.5,661.89 crore during the quarter from Rs.6,165.14 crore a year earlier.
The earnings per share stood at Rs.9.61 as compared to Rs.18.11 in the year-ago period.
A major drop in earnings was seen in the company's ferro alloys and minerals business with revenues dropping to Rs.357.32 crore from Rs.828.62 crore in the first quarter of 2008-09.
Wednesday, June 10, 2009
S&P rating on Tata Steel stays on watch negative
Standard & Poor's (S&P) Ratings Services today said it had kept its 'BB' issue rating on the 3.67 billion pound sterling senior secured debt of Tata Steel UK Ltd. (TSUK) on CreditWatch, where it was placed with negative implications on February five.
''We have kept the issue rating on CreditWatch pending a review of our recovery analysis on TSUK. This review will factor in the impact on our simulated default scenario, and in turn our estimate of the stressed enterprise value at default, following: (1) a recent agreement with banks to amend the covenants on the company's senior secured debt; (2) the significant deterioration in the operating environment; and (3) the measures that TSUK undertakes to manage the currently challenging environment,'' said Standard & Poor's credit analyst Yasmin Wirjawan in a release here.
The issue rating is two notches above the corporate credit rating because of the recovery rating of '1', which indicated very high recovery in the event of a payment default.
The agreement with lenders has resulted in the testing of earnings-related covenants to be largely suspended until March 2010.
Testing would resume with significantly higher flexibility compared with the original covenants. Under the agreement, parent Tata Steel Ltd. (BB-/Negative/--) will inject 425 million pound sterling into TSUK in a phased manner.
TSUK would use about 200 million pound sterling to make prepayments on its debt.
TSUK is the intermediate parent holding company of U.K.-based steel manufacturer Corus Group PLC and is a wholly owned subsidiary of Tata Steel.
''We have kept the issue rating on CreditWatch pending a review of our recovery analysis on TSUK. This review will factor in the impact on our simulated default scenario, and in turn our estimate of the stressed enterprise value at default, following: (1) a recent agreement with banks to amend the covenants on the company's senior secured debt; (2) the significant deterioration in the operating environment; and (3) the measures that TSUK undertakes to manage the currently challenging environment,'' said Standard & Poor's credit analyst Yasmin Wirjawan in a release here.
The issue rating is two notches above the corporate credit rating because of the recovery rating of '1', which indicated very high recovery in the event of a payment default.
The agreement with lenders has resulted in the testing of earnings-related covenants to be largely suspended until March 2010.
Testing would resume with significantly higher flexibility compared with the original covenants. Under the agreement, parent Tata Steel Ltd. (BB-/Negative/--) will inject 425 million pound sterling into TSUK in a phased manner.
TSUK would use about 200 million pound sterling to make prepayments on its debt.
TSUK is the intermediate parent holding company of U.K.-based steel manufacturer Corus Group PLC and is a wholly owned subsidiary of Tata Steel.
Saturday, June 6, 2009
Tata Steel sales up by 18%
Despite conitinuing slowdown, world's sixth largest steel producer Tata Steel has registered an increase of 18 per cent in its sales of India operations during May 2009.
According to the monthly production and sales results of the sole operational Indian plant issued here today, the total sales during May was 4,69,000 tonnes, higher by 18 per cent as compared to the sales of the corresponding period last year.
The production of hot metal (5,28,000 tonnes), crude steel (4,86,000 tonnes) and saleable steel (5,01,000 tonnes) was also higher by 19, 17 and 23 per cent respectively as compared to May 2008 figures.
The sales of long and flat products has seen an increase of 34 and 8 per cent respectively.
According to the monthly production and sales results of the sole operational Indian plant issued here today, the total sales during May was 4,69,000 tonnes, higher by 18 per cent as compared to the sales of the corresponding period last year.
The production of hot metal (5,28,000 tonnes), crude steel (4,86,000 tonnes) and saleable steel (5,01,000 tonnes) was also higher by 19, 17 and 23 per cent respectively as compared to May 2008 figures.
The sales of long and flat products has seen an increase of 34 and 8 per cent respectively.
Sunday, February 1, 2009
Tata Steel increases salary amidst recession
Despite a steep downturn in the net profit last quarter due to global meltdown, the world's sixth largest steel producer Tata Steel has given yet another salary hike to a section of its India operations employees.
The company, which increased the wages of around 16,000 employees on November 1 last, signed yet another wage revision agreement with the Tata Workers Union (TWU) last evening here to give a minimum guaranteed hike of Rs 1,000 per month in the basic salary of around 700 odd employees under T-grade of its Jamshedpur plant, the sole operational unit of the company in India.
The memorandum of settlement, signed by chief operating officer of the company H M Nerurkar and the president of TWU Raghunath Pandey, will also increase the rates of increment, dearness allowance, house rent allowance, leave travel concession and transport allowance.
Mr Pandey told UNI here today that the hike would be applied with retrospective effect from November 1, 2008. The company had earlier increased the wages of the employees of its subsidiary high precision equipment manufacturer Tata Growth Shop in December last year.
The company has seen a steep decline of more than 54 per cent in its net profit during the last quarter of the current fiscal.
The company, which increased the wages of around 16,000 employees on November 1 last, signed yet another wage revision agreement with the Tata Workers Union (TWU) last evening here to give a minimum guaranteed hike of Rs 1,000 per month in the basic salary of around 700 odd employees under T-grade of its Jamshedpur plant, the sole operational unit of the company in India.
The memorandum of settlement, signed by chief operating officer of the company H M Nerurkar and the president of TWU Raghunath Pandey, will also increase the rates of increment, dearness allowance, house rent allowance, leave travel concession and transport allowance.
Mr Pandey told UNI here today that the hike would be applied with retrospective effect from November 1, 2008. The company had earlier increased the wages of the employees of its subsidiary high precision equipment manufacturer Tata Growth Shop in December last year.
The company has seen a steep decline of more than 54 per cent in its net profit during the last quarter of the current fiscal.
Wednesday, October 8, 2008
Tata Steel bags Deming Application Prize
Tata Steel has bagged the prestigious Deming Application Prize-2008 for Total Quality Management (TQM), a company official said here Tuesday.
The Deming Prize Committee, instituted by the Japanese Union of Scientists and Engineers, Tuesday announced the award - first for any integrated steel company outside Japan. It will be formally handed over at a ceremony scheduled in Tokyo Nov 12.
Tata Steel managing director B. Muthuraman dedicated the honour to the employees of the company, its customers and business partners, who have been part of the TQM journey initiated in 1988.
"No other activities made us think so deeply about our business and relationships than the process of applying for the Deming Prize. It is a fundamental way of managing business and every organisation can gain from institutionalising the culture necessary to win this prize," Muthuram observed.
Established in 1950 in honour of W. Edwards Deming, the Deming Prize was originally designed to reward Japanese companies for major advances in quality improvement.
So far, 160 companies worldwide have won the prize, including 15 Indian companies from the automotive sector.
The Deming Prize Committee, instituted by the Japanese Union of Scientists and Engineers, Tuesday announced the award - first for any integrated steel company outside Japan. It will be formally handed over at a ceremony scheduled in Tokyo Nov 12.
Tata Steel managing director B. Muthuraman dedicated the honour to the employees of the company, its customers and business partners, who have been part of the TQM journey initiated in 1988.
"No other activities made us think so deeply about our business and relationships than the process of applying for the Deming Prize. It is a fundamental way of managing business and every organisation can gain from institutionalising the culture necessary to win this prize," Muthuram observed.
Established in 1950 in honour of W. Edwards Deming, the Deming Prize was originally designed to reward Japanese companies for major advances in quality improvement.
So far, 160 companies worldwide have won the prize, including 15 Indian companies from the automotive sector.
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