Tata Steel Q2 consolidated net loss at Rs 2,719-cr

Tata Steel,however,is pinning hope on increased sales to see “a trend reversal” in the second half of the current fiscal as it anticipates “stability in price” and no likelihood of raising the capacity utilisation level,from 75 per cent now,at its European operation.

“The capacity utilisation at Europe is likely to continue at the same rate in the remaining period of the current fiscal,” Tata Steel Europe’s Managing Director and Chief Executive Officer Kirby Adams said.

Tata Steel Europe returned to the positive EBIDTA level in October,Adams said,hoping that it would remain positive in the third and fourth quarters of the current fiscal as well due to volume growth and cost reduction.

While production at Tata Steel Europe was at 7.1 million tonnes in H1 FY’10 as compared to 12 million tonnes in the same period last fiscal,Tata Steel India had produced 3.14 million tonnes in the first half,up from 2.61 million tones in the first half of the previous fiscal.

Revenue at Tata Steel Europe increased to USD 3.5 billion in the second quarter as compared to USD 3.2 billion in the first quarter. It’s revenue was at USD 6.7 billion in the first half,down by 51 per cent as compared to USD 13.7 billion in the same period last fiscal.

The Group’s total turnover was at USD 5.2 billion in the second quarter ended September 30,2010 as against USD 4.8 billion in the first quarter of the current fiscal.

On TCP,Adams said the company was in the process of finalising a long-term plan for the plant,in which the options of redevelopment,mothballing or joint venture redevelopment were open.

However,he said that TCP was likely to break even in the current quarter.

Tata Steel Europe had earlier found two potential buyers,who subsequently cancelled the MoU in June 2009,leaving the plant in the lurch.

Tata Steel Managing Director H M Nerurkar said that the company would continue to look at higher volumes in its operations in India and South-East Asia.