Tata Steel Says India Unit’s Profitabilty to Improve on Sales
Steel demand in India may rise after the nation’s central bank indicated a pro-growth monetary policy, Tata Steel said in an investor presentation posted on its website. The company expects its loss-making European unit to register better margins in the coming quarters following a surge in prices and purchases by customers.
Indian steelmakers, including Tata Steel, have increased prices of long products, used in construction projects, by 8 percent this year. Tata Steel’s sales volume in the fiscal fourth quarter rose 3.3 percent to 1.77 million metric tons, the Mumbai-based company said in an e-mailed statement on April 9.
Tata Steel shares fell 1.5 percent to 452.80 rupees at close in Mumbai. The stock gained 35 percent this year, compared with a 12 percent increase in the benchmark Sensitive Index.
The Reserve Bank of India left its repurchase rate at 8.5 percent, the highest level since 2008, for a third straight meeting on March 15. It signaled future cuts to bolster slowing growth, while flagging inflation risks, including the fiscal deficit, oil prices and rupee depreciation.
To contact the reporter on this story: Abhishek Shanker in Mumbai at email@example.com
To contact the editor responsible for this story: Rebecca Keenan at firstname.lastname@example.org
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.