Tata Steel reports Rs 1,229cr net loss in Q3

NEW DELHI: Tata Steel on Friday reported a consolidated net loss of Rs 1,229 crore for the quarter ended on December 31, 2019, mainly due to lower sales and impairment provisions for its European operations. Tata Steel had posted a consolidated net profit of Rs 1,753 crore during the same quarter a year ago, the company said in a BSE filing.
Its gross sales fell to Rs 34,774 crore in October-December 2019 from Rs 38,086 crore in the year-ago period. Its expenses were at Rs 35,849 crore as compared to Rs 35,930 crore in the preceding fiscal.
The company said consolidated financial results included a provision for impairment in respect of non-current assets and restructuring provisions within the European operations.
“During the quarter, Nat-Steel Holdings, a wholly owned indirect subsidiary of the company, disposed of its entire stake in Nat Steel Vina. The loss on disposal of the subsidiary is included within profit/ (loss) from discontinued operations,” Tata Steel said.
The company said during the third quarter global economic growth further slowed down amid heightened concerns of US-China trade war and regional steel prices were down as steel demand was affected by weaker industrial output in key markets. In Europe, the overall slowdown was more pronounced due to seasonal weakness and elevated levels of unfairly priced imports.
Revenue from operations decreased to Rs 13,821 crore during the quarter under review primarily due to sharp decline in European steel prices, resulting in loss of Rs 956 crore at ebitda level. AGENCIES