Tata Steel has reported 69 per cent fall in the December quarter consolidated net profit at ₹157 crore against ₹503 crore in the same period last year, due to high cost and sharp fall realisation both in India and international markets.
Net sales were down eight per cent at ₹33,324 crore (₹36,410 crore).
On a standalone basis, net profit dipped 42 per cent at ₹881 crore (₹1,519 crore), while sales slipped two per cent to ₹9,821 crore (₹10,040 crore) due to weak demand.
The company has resumed mining operations in January as the Mines and Minerals Development and Regulation Amendment Ordinance 2015 provides for extension of lease till March, 2030 in case of captive consumption.
Softening prices During the quarter, the Indian business faced strong market headwinds in terms of weak steel demand and a surge in low-priced imports, which led to significant softening of the domestic steel prices.
In addition, regulatory challenges led to disruptions in our mining operations, said Tata Steel in a statement on Friday.
TV Narendran, Managing Director, said steel demand in India remained subdued during the quarter and domestic steel prices witnessed further deterioration due to the continued softening of global steel prices coupled with significant imports from China and Russia.