Tata Steel posts profit in Q3 even as Europe ops bleed

China's exports hit global steel prices as well as profitability, Tata Steel CEO Narendran says

Tata Steel turned the corner during the quarter ending 31 December aided by a stronger performance in its India unit even as its European business continued to hemorrhage capital.

The company reported a consolidated profit of 1522 crore during the quarter compared to a loss of 2,502 crore in the corresponding quarter last year and 16,511 crore in the preceding quarter.

The recovery was primarily led by the domestic unit of Tata Steel, which reported a pre-tax, depreciation and interest profit of 18,257 crore compared to 15,335 crore last year. Meanwhile, Europe reported a loss of 2,872 crore before tax, depreciation, interest and exceptional items.

"The UK business continues to face production shortfalls arising from the end-of-life condition of several of its heavy end assets," said Koushik Chatterjee, executive director and chief financial officer, Tata Steel.

Subdued demand weighed on the margins of the better-performing Netherlands business too, he said.