Tata Steel reported a consolidated loss before tax of Rs 236 crore in the December quarter, against a profit of Rs 3,140 crore in the same period a year ago, on the back of lower sales. Consolidated net sales in the period stood at Rs 34,774 crore, down 9 per cent from the same period a year ago, as lower steel demand and weak prices of the commodity hurt the top line.
“Economic conditions remained very challenging during the quarter, which impacted the overall business performance. Tata Steel Europe reported a loss of Rs 956 crore at Ebitda (earnings before interest, taxes, depreciation and ammortisation) level, primarily due to £75 per tonne decline in realisations, which weighed on our consolidated performance,” Koushik Chatterjee, executive director and chief financial officer, was quoted as saying.
The firm’s consolidated bottom line was a loss at Rs 1,228 crore, against a profit of Rs 1,753-crore profit reported in the same period last year.
During the quarter, global economic growth further slowed down amidst heightened concerns of a US-China trade war. Regional steel prices were down as steel demand was hit by weaker industrial output in key markets. However, Chinese apparent steel consumption remained steady and steel exports stabilised below 5 mt a month, it said in a release.
According to Bloomberg estimates, Tata Steel’s consolidated net sales was seen at Rs 35,000 crore and bottom line was expected to be a profit of Rs 278 crore.