Tata Steel on Wednesday reported a consolidated net profit for the fiscal year ended March versus a loss in the year ago, helped by stronger volumes at its Indian operations and better prices in Europe.
The world's seventh-largest steelmaker by output reported net profit of 89.83 billion rupees ($2 billion) for the year after taxes, minority interest and share of profit of associates, compared with a consolidated net loss of 20.09 billion rupees a year ago.
Net sales for the year were 1.17 trillion rupees, compared with 1.02 trillion rupees in the previous year.
The $500 billion global steel sector has been caught in a margin squeeze since the middle of 2010, when raw material costs began increasing, but improving demand from the auto sector has helped boost steel prices.
Earlier this month, World No 1 steelmaker ArcelorMittal predicted higher profits in the second quarter, but Asian producers such as POSCO and Baosteel are still suffering depressed margins due to high raw material costs.
Tata Steel's European operations account for two-thirds of its global capacity of about 28 million tonnes, while the booming Indian operations contribute a quarter. It also has units in Thailand and Singapore.
Last week, the company said it will cut about 1,500 jobs in Britain as part of a restructuring of its loss-making long products unit, and cut capacity at a plant in northern England.
Ahead of the results, Tata Steel shares closed 0.9 percent down at 561.20 rupees in a Mumbai market that also fell 0.9 percent.
Tata Steel shares, valued at $11.2 billion, have declined 17.5 percent so far in 2011, compared with a nearly 13 percent fall in India's benchmark index. ($1=45.3 rupees)
