Net loss of Tata Steel mounted manifold to Rs 3,183 crore on consolidated basis in the first quarter ended June 30, 2016-17. The steel giant had reported net loss of Rs 316.91 crore for the April-June quarter in the last financial year. Its total income fell by 6% to Rs 26,406.10 crore during the quarter under review, as against Rs 28,025.43 crore in the year-ago period, the Mumbai-based firm said in a BSE filing. Total expenses were however lower at Rs 24,405.86 crore, from Rs 26,679.76 crore. Loss of Rs 3,296 crore from discontinued operations was recognised on account of divestment of Long Steel UK Ltd, it said, adding that the sale was completed during the quarter. Tata Steel's gross debt rose to Rs 85,475 crore at the end of the June quarter of current fiscal, from Rs 81,975 crore in the year-ago period, mainly due to increase in India and Tata Steel Global procurement. Its net debt also rose by Rs 4,171 crore to Rs 75,259 crore. "The company tapped the Commercial Paper market in India to capitalise on lower yields in the short end market. Power purchase agreements of captive nature have also been classified as finance lease under IND AS resulting in an increase in gross debt," it added. The company said it has a strong liquidity position with cash and cash equivalents including drawn and undrawn lines of Rs 12,746 crore. Its total steel deliveries stood at 5.41 million tonnes in the April-June quarter of 2016-17. On asset sale, it said: "Tata Steel UK is currently progressing with the divestment of the Speciality Steel business and the pipe mills in Hartlepool.
The shortlisted bidders are being given access to due diligence and management meetings." It further said: "As disclosed earlier, Tata Steel Europe continues to be in discussion with industry players to explore options for a strategic collaboration through a potential joint venture. Appropriate disclosure in the regard will be made in due course." Tata Steel UK is in engagement with all relevant stakeholders including the UK government, the Trustee and the unions on the exposure to pensions of the UK business. The discussions are currently ongoing, it added. The company incurred a capex of Rs 2,442 crore during the June quarter. Of this, Rs 1,118 crore was in India, largely on the completion of the 3 MT per annum greenfield steel plant at Kalinganager and related projects, while Rs 679 crore was incurred in Europe.