Tata steel has gained market share

B Muthuraman, MD, Tata Steel said that the company will sell 20-25% more in the current year compared to last year. Tata steel has gained market share as India has seen 6% demand growth. The blended realisations were at Rs 2000/ton. A 33% increase in production was seen in saleable steel. India and China continue to remain positive stories. The global steel demand is down 30-35% YoY.

The steel production stood at 1.54 mt. The sales volume were up 20% at 1.42 mt. The profitability to improve as raw material prices have eased down. The company will see full impact of capacity additions in FY10. EBITDA growth was due to better prices.

The saving from withering the storm initiative stands at $ 450 million. The total savings target from cost saving program stands at $ 1.2 bn. He expects to complete the year with 70% capacity utilization in Europe. Q1 performance of Europe is   very much like Q4 of FY09.

The cost for the full year is expected to be lower by $ 25/ton. Indian operations are working at 100% capacity.

Tata Steel has announced its first quarter results. The company’s net sales were down at Rs 5,554 crore versus Rs 6,165 crore. Its net profit was down at Rs 790 crore versus Rs 1,488 crore.