Tata Steel Limited reports solid fiscal performance in FY 2008-09 despite a decline in steel deliveries, implementing strategic initiatives to bolster its operational competitiveness.

Target Information

Tata Steel Limited, one of India's leading steel manufacturers, recently released its audited Consolidated Group Financial Results for the fiscal year ending on March 31, 2009. The company reported a solid performance, with its Indian operations increasing deliveries by 9%, resulting in a total of 5.23 million tonnes for FY 2008-09. While the group’s overall steel deliveries of 28.54 million tonnes marked a 10% decline compared to the previous fiscal year, the turnover impressively rose to Rs. 147,329 Crores (approximately US$ 28,962 million), which represents a 12% increase from Rs. 131,534 Crores (around US$ 25,857 million) in FY 2007-08.

Industry Overview

The steel industry in India has shown resilience amid economic fluctuations, particularly during the financial year 2008-09. Despite global demand contractions, Tata Steel India experienced a revenue growth of 23%, reaching Rs. 24,316 Crores (US$ 4,780 million), indicating strong domestic market performance. The EBITDA also saw a 14% escalation, coming in at Rs. 9,442 Crores (US$ 1,856 million).

However, Tata Steel's European arm, Corus, encountered challenges marked by a 14% drop in steel deliveries, reflecting the broader sluggishness in the Europe