India's largest private sector steel producer Tata steel reported a decline of 41.93% from Rs 8,138.90 million to Rs 4,726.5 million during the third quarter of fiscal year 2010 but on consolidation basis the Company reported better than expected results. Company reported decline in the profit margins due to lower capacity utilization in Corus, its European arm despite higher prices and increased volumes. According to Hemant Nerurkar MD of Tata Steel, this was the first reporting period in which company's production and sales performance fully reflected its expanded capacity at Jamshedpur. He also added that company has recently been producing at beyond its new capacity level and are well placed to take advantage of the growth in Indian steel demand, which this year is predicted to be very robust at 8%. Tata Steel operations in South East Asia are also in a good position to benefit from the accelerating recovery in the rest of Asia. The company steel demand is expected to rise in the coming quarters due to recovery in the automobile and industry sector in Europe where as demand for steel is limited in developing countries like China and India.