Tata Steel sinks into red, logs loss of Rs 3,337 crore in June quarter

Topics Tata Steel | Q1 results | Lockdown

Tata Steel reported a consolidated loss before tax of  Rs3,337.64 crore in the June quarter, against a profit before tax of Rs1,819 crore in the corresponding period last year on the back lower revenues.

The consolidated net sales in the quarter gone by stood at Rs23,812 crore, down 33 per cent from same period last year led by considerable drop in net sales from India operations. India average steel realisations were lower due to the Covid impact during the quarter and about Rs2,000 crore of costs were under absorbed due to the lower volumes and have been charged to the profit and loss account, said the company in the release. 

Revenue from India operations stood at Rs9,145 crore, down 42 per cent from same period last year. 

In standalone operations, the firm incurred a fair gain value on preference share investment (exceptional item) of Rs2,031 crore in the June quarter. This lent a considerable support to the profit before tax that stood at Rs1,553 crore in the period under review. At operating level, India operations made a loss of Rs505 crore against an operating profit of Rs2,443 crore in the same period last year.

Tata Steel Europe performance was affected with the overall weakness in economic activities in Europe. The company did receive short support from the UK and the Netherlands, said Tata Steel.

Tata Steel Europe performance was affected by lower deliveries and sharp decline in European spreads to an unsustainably low level, Koushik Chatterjee, executive director and chief financial officer was quoted as saying. The consolidated net loss in the period under review widened to Rs4,648 crore against a profit of Rs714 crore in the same period last year as tax expenses worth Rs1,271 crore dragged the bottomline further.

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