Business

Tata Steel profits from India sales

Indian welder
Image caption Sales of steel in India rose by a quarter

India's Tata Steel has reported a return to profit for the second quarter of the financial year, thanks to a rise in demand in domestic markets.

Net profit came in at 19.8bn rupees ($442m; £273m), comfortably beating analysts' expectations, compared with a loss of 27.1bn rupees a year earlier.

Revenue rose by 11% to 281bn rupees after sales in India rose by a quarter.

But the company said the demand outlook for Europe, where it operates as Tata Europe, formerly Corus, was uncertain.

"We registered strong sales in India in the second quarter, aided by growing strength in industrial activity and intensifying demand from the infrastructure, construction and auto sectors," said Tata Steel managing director HM Nerurkar.

He added he was confident that Tata would record "fairly strong performance" for the full financial year.

In Europe, the group also posted profits, in part thanks to cost-cutting and restructuring measures implemented since the onset of the global financial crisis.

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