Tata Steel posts profit in Q3 even as Europe ops bleed
₹522 crore during the quarter compared to a loss of ₹2,502 crore in the corresponding quarter last year and ₹6,511 crore in the preceding quarter. The recovery was primarily led by the domestic unit of Tata Steel, which reported a pre-tax, depreciation and interest profit of ₹8,257 crore compared to ₹5,335 crore last year. Meanwhile, Europe reported a loss of ₹2,872 crore before tax, depreciation, interest and exceptional items.
“The UK business continues to face production shortfalls arising from the end-of-life condition of several of its heavy end assets," said Koushik Chatterjee, executive director and chief financial officer, Tata Steel. Subdued demand weighed on the margins of the better performing Netherlands business too, he said. While the company turned the corner during the quarter, T.V.
Narendran, the chief executive and managing director of Tata Steel, maintained that the business environment was tough. “Global operating environment has been complex, with economic slowdown in China and geopolitics weighing on commodity prices in general," he said. During the December quarter, China exported between 7 and 8 million tonnes of steel every month, he said, which is the highest since 2015.
This, he claimed, has adversely impacted global steel prices as well as profitability. “Despite this context, Tata Steel India has delivered better margins aided by higher deliveries as well as realisations on a QoQ basis," he said. On a consolidated basis, the company reported a top line of ₹55,312 crore.
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