Tata Steel has reported that its profits fell by a larger-than-expected 70% in its first fiscal quarter (ending 30 June).

The Indian-owned group blamed the fall on one-off charges and added that its European operations are currently picking up.

Net profits fell to 3.37 billion rupees ($55 million), from 11.39 billion rupees a year earlier, on sales that climbed 11% to 364.27 billion rupees. In a statement, the group said: “Operating performance improved across all geographies,” adding that it will “keep concentrating on reducing expenses and improving operations” in Europe.

Karl-Ulrich Kohler — CEO of Tata Steel in Europe, where the company is rated as the number-two steel producer — said: “European steel demand is moving in the right direction.

Although it remains well below levels that we would regard as healthy, we can see greater stability emerging in the markets that we serve.”