Net income, including that of unit Tata Steel Europe Ltd., was 5.03 billion rupees ($81 million) in the three months ended Dec. 31, compared with a loss of 7.63 billion rupees a year earlier, the Mumbai-based company said today in a statement. Sales rose 14 percent to 364.1 billion rupees. Tata Steel’s total costs rose 9.3 percent to 364.1 billion rupees in the quarter, while raw material expenses increased 19 percent to 116.3 billion rupees.
Tata Steel benefited from an upturn in demand in Europe after a slowdown in the year ended March 31, 2013 left the company with excess capacity and shrinking profit margins. To counter the slump, the company cut costs by reducing jobs in the U.K. and using coking coal and iron ore from its own mines in Mozambique and Canada. It also focused on selling high-value products.
Tata Steel shares, which have fallen 8.1 percent this year, gained 1.9 percent to 389.75 rupees at the close.