Tata Steel says weak demand caused profits to fall 89%

Tata Steel
Image caption Tata Steel is the world's tenth largest steel-maker

Tata Steel said weak demand caused an 89% fall in profits to 2.12bn rupees ($42.2m; £26.3m) in the three months to the end of September.

The firm's raw material costs, which include iron ore and coking coal, rose 15% over the same period.

Managing Director Hemant Nerurkar said repeated interest rate rises in India had also "impacted steel demand".

Tata Steel is part of Tata Group, which operates in markets ranging from tea to cars.

Tata Steel Europe chief executive Karl-Ulrich Koehler said raw material costs and lower selling prices "made the normally quiet summer quarter particularly testing".

Tata Steel Europe was created when Tata acquired the Anglo-Dutch firm Corus in 2010.

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