Tata Steel has reported multi-fold increase in consolidated net loss in the June quarter at ₹3,183 crore against a loss of ₹317 crore recorded in the same period last year.
Besides challenging the business environment in Europe, the company has recorded a loss of ₹3,355 crore from the sale of long steel product division in UK.
Net sales were down 5 per cent at ₹26,332 crore (₹27,761 crore) on the back of lower production due to planned shut down in India.
Earnings before interest, tax, depreciation and tax in India was up at ₹2,236 crore, while the Ebitda margin increased 250 basis points to 22 per cent.
Ebitda per tonne was up 27 per cent at ₹10,455 due to higher realisations and focus on value added products.
TV Narendran, Managing Director, Tata Steel, said while the regulatory changes have helped stem flood of imports, domestic supply has increased and added to the competitive pressure.
“The recently commissioned Kalinganagar steel plant is ramping up fast and production at the plant is expected to cross the targeted one million tonne. We target to export 5 lakh tonnes of HR coil from the plant by end of this fiscal,” he said.
On the progress of restructuring in Europe, Koushik Chatterjee, Group Executive Director, said the due diligence for sale of speciality steel and pipe mill in Hartlepool is in progress even, while the company is working on long term sustainable solution for Port Talbot, including the joint venture option with ThyssenKrupp AG. As on June 30, the company had a gross debt of ₹ 85,475 crore against ₹81,975 crore recorded in March-end primarily due to higher procurement. Net debt was higher at ₹75,259 crore (₹71,087 crore as of March-end).
On a standalone basis, the company’s net profit was higher at ₹575 crore (₹425 crore), while net sales were up ₹10,261 crore (₹10,086 crore).
The company’s scrip were down five per cent at ₹374 on Monday.