Mumbai: Tata Steel on Thursday posted 63.6 per cent decline in consolidated net profit at Rs 701.97 crore for the quarter ended June 30 on account of weak demand and higher input costs.
The company had posted a consolidated net profit of Rs 1,933.80 crore in the year-ago period, Tata Steel said in a filing to the BSE.
However, Tata Steel's consolidated total income during April-June quarter increased to Rs 36,198.21 crore as against Rs 35,846.92 crore in the year-ago period.
"The steel sector is facing significant headwinds which has affected spreads and overall profitability," Tata Steel CEO and Managing Director T V Narendran said.
"However, our strong business model in India has helped us counter the overall market weakness, including the slowdown in the automotive sector, by growing volumes in multiple customer segments. Our focus on operational excellence has also helped in containing the impact on margins," he said.
Increased government spending and efforts to address the liquidity crunch, he said, should help revive demand and steel prices in India in the second half of the year.