Tata Steel Q3 net loss soars 27% on weak Europe ops

Moneycontrol Bureau

Tata Steel's December quarter net loss jumped 27 percent year-on-year to Rs 763 crore as weak demand and prices in its main European market squeezed margins. However, the company said, its domestic operations remained steady despite a weak demand scenario. Other income fell to Rs 56 crore from Rs 253.7 crore year-on-year impacting financial performance
Sales declined 3.5% year-on-year to Rs 31,821 crore. Other income fell to Rs 56 crore from Rs 253.7 crore year-on-year.
Analysts on an average had expected the company to post net loss of Rs 250 crore on net sales of Rs 32,500 crore.
Shares of the company closed the day at Rs 376.15, down 2.18 percent.
H.M Nerurkar, Tata Steel's managing director in an earnings statement said that the company's Indian operations remained steady despite overall weak steel demand in domestic market. "Our continued production ramp up in Jamshedpur will boost capacity utilization levels by the end of this year," he stated. Here is segment-wise performance of the company Domestic operations
Net profit up 26 percent year on year to Rs 1046 crore
EBITDA (earnings before interest, tax, depreciation and amortisation) marginally down to Rs 2525 crore
Deliveries totaled 1.89 million tonnes versus 1.62 million tonnes year-on-year European subsidiary performance
EBITDA loss of Rs 428 crore, down 45% YoY
Deliveries totalled 3.02 million tonnes in comparison to 3.35 mn YoY South East Asian operations
EBITDA stood at Rs 144 crore against Rs 8 crore( EBITDA loss)
Recorded total deliveries at Rs 0.82 million tonnes versus 0.66 million tonnes. Did you read: Long term investor can hold Tata Steel: Sekhar