Various cost cutting measures taken by TATA Steel has improved its margin in the July-September period. The company witnessed 213% increase in the net profit for the second quarter of current financial year despite slow demand and tough financial conditions. It has been working on various cost cutting measure, including improvement in efficiency, production control and salary cut, that ultimately yielded good Q2 results.

Its consolidated net profit increased to Rs. 4,703.60 crore, from Rs. 1,489.50 crore in the same period last year. The operating profit stands at Rs. 7,187 crore, from Rs.
3,660.50 crore last year. Its net finance charges dropped to Rs. 821 crore from previous Rs. 1,370 crore.

The managing director of the company, B Muthuraman said that it is an outstanding performance shown by the company. Various factors, such as good prices, cost-control measures and good integration benefits helped to improve the performance. India witnessed only marginal impact of slowdown that is much severe in the European and US market. Company would expand its Jamshedpur facility and built a new plant in Orissa despite the global slowdown. Corus CEO, Philippe Varin said its UK operations may suffer in the second half of the fiscal 2008-09 due to the slum in demand and credit problem.

Corus has already cut 400 jobs in the UK and Ireland besides imposing 30 per cent production cut. It is also working on the idea of further workforce reduction, following consultation with the Dutch government.