Tata Steel second quarter profit beats forecasts

India's Tata Steel has reported a surprise 22% rise in second-quarter consolidated net profit.

One-time gains in the quarter helped offset losses caused by cheaper imports to India and Europe from the world's top steel producer, China.

Net profit at Tata Steel, which is part of a conglomerate of firms, rose to 15.29bn rupees (£152m; $233m).

But in the UK, Tata Steel faces a "structurally challenging environment", it said.

Analysts had forecast a second-quarter net profit of 11.8bn rupees for the firm.

But profit was helped by 28bn rupees earned from the sale of investments during the quarter, Tata said.

However, the firm was gloomy in its outlook for its UK business.

"Weak domestic manufacturing demand, surging imports, a strong pound and steep regulatory and business costs" were all challenges in the UK, the firm said.

In October, it announced nearly 1,200 job losses at its plants in Scunthorpe and Lanarkshire.

Nine hundred jobs will be lost at the firm's plant in Scunthorpe. The remaining 270 jobs will go in Motherwell and Cambuslang.