Tata Steel reported a consolidated net loss of Rs 49.38 crore over ramp-up effect at Kalinganagar facility and regulatory mining costs.
Tata Steel, on Friday, reported a consolidated net loss of Rs 49.38 crore in September quarter on account of ramp-up effect at Kalinganagar facility and regulatory mining costs, among others. It had posted a net profit of Rs 5,609.43 crore in the same quarter of last fiscal 2015-16.
Total consolidated income of the steel giant rose marginally to Rs 27,471.15 crore in July-September quarter of the current fiscal, from Rs 27,456.30 crore a year ago. The firm's total expenses were however lower at Rs 25,968.85 crore, as against Rs 26,988.65 crore. On a quarter-on-quarter basis, the firm managed to narrow its net loss. Tata Steel had reported consolidated net loss of Rs 3,183.07 crore in the April-June quarter. Total consolidated income rose 4 % sequentially from Rs 26,406.10 crore in June quarter this fiscal to Rs 27,471.15 crore in September quarter.
Tata Steel Group CFO Koushik Chatterjee said the "Group's EBITDA margin for the quarter was lower at 10.9 %, due to the seasonally weaker quarter in India, ramp-up effect at Kalinganagar and regulatory mining costs". On merger, Tata Steel said: "Tata Steel Europe continues to be in discussion with ThyssenKrupp to explore options for a strategic collaboration through a potential joint venture." Tata Steel UK is deeply engaged with all relevant stakeholders in the UK including unions, Pension Trustees and the Pension Regulators to find a structural solution and a way forward with regards to the affordability of the legacy pension scheme liabilities.
Discussions are currently ongoing, it added. The Group deliveries rose by 4.5 % to 5.65 million tonnes (MT) during the July-September quarter as India volumes grew sharply offsetting planned reduction in European volumes. Operating performance in Tata Steel Europe has improved significantly compared to previous year due to significant improvement in operating performance, impact of restructuring of structurally weak businesses and favorable market and currency movements especially in the UK, he added.
Tata Steel India and South East Asia Managing Director T V Narendran said: "The markets were challenging as strong monsoons affected steel demand across the country while the increase in domestic capacity added to the competitive pressure. Despite this, Tata Steel registered strong performance and increased volumes by 23 % q-o-q to 2.6 MT during the quarter. Sales improved across most customer segments including Branded Products and Industrial Products, he added. There was a sharp drop in realisations which coupled with the ramp-up costs at the Kalinganagar plant kept margins under pressure. While realisations have since improved, rising coal prices will affect margins in the short run and will necessitate increase in steel realisations going forward.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Tata Steel")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}