Tata Steel posts loss of Rs 2.1k cr

MUMBAI: Tata Steel, the flagship company of the tea-to-telecom Tata group, has slipped in the red as sluggish global demand weighed on its European operations. The company reported a consolidated loss of Rs 2,121 crore in FY10 compared with a net profit of Rs 4,849 crore in FY09. Total income was lower by 31% at Rs 102,393 crore as the company\'s European outfit Corus reduced capacity in the first half of the year due to the financial crisis . The turnover also contracted because of a collapse in steel prices.



Kirby Adams, MD of Tata Steel Europe, said, '' The year (2009-10 ) has been a year of huge transformation, a period of change and a period of recovery for Tata Steel Europe . There has been a dramatic turnaround in the company\'s performance during the second half of the year.\'\' Adams said though steel prices in the second half of FY10 were better than the first half of FY10, the company\'s performance was aided by strong order book leading to higher capacity utilisation and reduction in costs by 24% or $300 million.
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