The Indian economy remained weak during the quarter and domestic steel prices reached a nadir in October 2019. However, steel prices are on an upward trend since November with inventory rationalization and increase in government spending. Market sentiments have improved as recent PMI manufacturing and bank credit growth data suggest pick-up in activity levels ahead, the release added.
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.
delivered strong growth in volumes despite poor macroeconomic conditions in India as well as globally. In India, our business model helped us counter the slowdown as we successfully penetrated new markets
and expanded our customer universe. We were also able to maintain our sales to the auto segment despite the sluggishness faced by the auto industry. Both our acquisitions, Tata Steel BSL and Tata Steel Long Products, continue to deliver operational improvements and achieve milestones in the market place. However, our European operations made a loss as it felt the brunt of the overall slowdown and the consequent shrinking of spreads. This adversely affected our consolidated performance," said T V Narendran, CEO & Managing Director. CLICK TO READ THE PRESS RELEASE
At 09:36 am, Tata Steel was trading over 4 per cent lower at Rs 452 apiece on the BSE as compared to a 157-point or 0.38 per cent decline in the S&P BSE Sensex.