SEATTLE (Scrap Monster): For the first time in history, Tata Steel’s European operations reported better EBITDA per tonne, in comparison with India operations, during Q1FY23. The long-term contracts and operational efficiencies helped, said T.V. Narendran, CEO and MD, Tata Steel.
According to the company, the European business reported a strong quarter. This was aided by a sharper focus on the business, by way of separating the UK business from the Dutch one. Although spreads in Europe are expected to be better than the previous decade, the Indian operations are expected to be stronger than the European business in the upcoming quarter, he said.
In Q2, both the Indian and European operations will see margin compression, as costs are expected to cool off only by September this year. However, the company expects selling volumes to remain strong during the quarter.
Tata Steel has met the EU goals, by reducing the gas requirement in the UK by 20% and in the Netherlands by 15%. In the long term, the Netherlands unit will have to invest in assets that use gas instead of coal. The company is in negotiations with the UK government to make electricity available at lower rates.
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