Tata Steel Q3 net loss widens to Rs 763 cr
Tata Steel's consolidated net loss has gone up by 26.61 per cent to Rs 763.06 crore in the October-December quarter as weak steel demand, particularly in the European markets, squeezed margins and led to decline in sales.
The Tata group company had reported a net loss of Rs 602.67 crore in the corresponding period of the previous fiscal.
Consolidated net sales of the company went down by 3.47 per cent to Rs 31,821.50 crore during the quarter vis-a-vis Rs 32964.15 crore of the Q3 of FY'12.
"EBIDTA was a loss for this quarter primarily on account of the price-cost squeeze. The level of selling prices are declining much more than the decrease in the raw material prices that happened this quarter. The demand contraction in Europe is very significant, even structurally," Tata Steel's Group CFO Koushik Chatterjee said in a conference call.
Tata Steel's net realisations declined by 3 per cent to USD 1,000 per tonne during the quarter, he said, adding that "the slide as far as the market is concerned is been much more severe to make out any visible impact as far as the bottom line is concerned. I don't think there is any magic bullet in this whole challenge (to tide over the crisis)."
The company's EBITDA (earnings before income, tax, depreciation and amortisation) loss from European operations during the October-December quarter stood at Rs 428 crore (USD 78 million) compared to the EBITDA loss of Rs 781 crore (USD 142 million) in Q3 FY¿12.
Besides, its steel deliveries declined nearly 10
Be the first to comment.
