According to Tata Steel, the European division, which the Indians have long wanted to get rid of, also made more profit. The result before interest, tax and depreciation amounted to approximately 145 million euros in the closing quarter of the broken financial year. A year earlier, the company reported an operating profit for its European operations of 650 million rupees, which at current exchange rates amounts to 7.3 million euros. A precise comparison is difficult to make given the sharp fall in the Indian currency in the past year.
Tata Steel has been trying to divest the European or the Dutch branch for years. The higher wages and stricter environmental regulations in Europe mean relatively high costs compared to the Indian home market. In January, a hoped-for takeover of the blast furnace complex in IJmuiden by the Swedish SSAB was canceled. Two years ago, a merger between Tata Steel Europe and the steel division of ThyssenKrupp also broke off.
Now that the sale of Tata Steel Netherlands to the Swedes is out of the question, the parent company is doing everything in its power for the time being to keep the greenhouse of the European division better filled. Last year, efforts to reduce costs created a lot of tension with Dutch personnel. After days of strikes, Tata Steel promised not to force anyone in the Netherlands to fire and job retention agreements were extended by five years until October 2026.
Tata Steel as a whole posted an operating profit of 143 billion rupees, equivalent to 1.6 billion euros, in the closing quarter of its 2020/2021 fiscal year. According to the group, this was the highest operating profit in a single quarter ever. Tata Steel also worked to reduce the substantial debt burden. Net debt fell by 28 percent.
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