Q3 results: Tata Steel slips into red, posts loss of Rs 1,753 crore

Reporting its India operations, the company said its profit for the quarter stood at Rs 1,194 crore in Q3FY20, down 47 percent YoY against Rs 2,253 crore in Q3FY19.

The company said its consolidated steel production stood at 6.99 million tonne while deliveries grew by 12 percent QoQ to 7.31 million tonne.

India steel production stood at 4.47 million tonne. India deliveries jumped 17 percnet QoQ to 4.85 million tonne and contributed nearly 66 percent of consolidated deliveries, the company said.

Consolidated revenues increased 3 percent QoQ but fell 9 percent YoY to Rs 35,520 crores while India revenues grew by 5 percent QoQ but fell 5 percent YoY and stood at Rs 21,299 crore.

“Tata Steel 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," said T V Narendran, CEO & Managing Director of the company.

"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," he added.

Narendran added that the steel demand in India is expected to improve on the back of increasing government spending and a revival in the broader economy. Coronavirus does pose a risk and we are closely monitoring the fallout.

“Economic conditions remained very challenging during the quarter which impacted the overall business performance," said Koushik Chatterjee, Executive Director and CFO.