Tata Steel Q3 net loss widens, misses estimates

Posts a net loss of Rs 760 crore for Q3 FY13, sales declined 3% to Rs 31,821 crores

Tata Steel posted its second straight quarterly loss on Wednesday, as weak demand and prices in its main European market squeezed margins.

Tata, which operates nearly two-thirds of its 28-million-tonne capacity in Europe, reported a worse-than-expected net loss of Rs 760 crore for the three months to December 31. Net sales fell 3% to Rs 31,821 crores.

Analysts on average had expected the company to report a net loss of Rs 74.5 crores for the December quarter, according to Thomson Reuters StarMine Smart Estimate data.

The net loss for the quarter compared with a loss of Rs 600 crores a year earlier.

Shares in Tata Steel, valued at Rs 690 crores, closed down 2.3% ahead of the results announcement.