Tata Steel has expressed concern over slowing steel demand. However, it hoped that demand will revive with the recent reform measures taken by the Government and reduction in the key banking rates, which will lead to lower lending rates and boost infrastructure activities.

Koushik Chatterjee, Whole-time Director and Group CFO, said steel demand continues to be sluggish with many infrastructure projects that have achieved financial closure not taking off.

Besides, steel demand from the automobile sector, especially from light commercial vehicle makers, remains depressed, he said. On a standalone basis, Tata Steel’s net profit was down 26 per cent at Rs 1,046 crore for the quarter ended December (against Rs 1,421 crore in the same period last year), while net sales were up 12 per cent at Rs 9,268 crore (Rs 8,305 crore). Total expenses jumped 21 per cent to Rs 7,278 crore (Rs 6,026 crore).

The company’s sales were up at 1.89 million tonnes (1.62 mt). EBITDA was lower four per cent at Rs 2,525 crore (Rs 2,618 crore). The realisation per tonne was lower at $903 ($962).

The overall steel demand this fiscal may increase by four per cent to 77 million tonnes against 74 million tonnes registered last year.The demand for steel in Europe continues to remain sluggish as prices fell sharper than the raw material cost, leading to a loss of $78 million ($142 million). The turnover was up 12 per cent at $3.3 billion. In Europe, the realisation per tonne was at $1,057 ($1,057). Sales were at 3.02 mt (3.35 mt).

> Suresh.iyengar@thehindu.co.in

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