Tata Steel Q2 Result: Steel Firm Posts Rs 6,511 Crore Net Loss, Production Dips To 7.31 MT

Tata Steel's total expenses stood at Rs 55,853 crore in Q2 against Rs 57,684 crore a year-ago period

Tata Steel said its crude steel output declined to 7.31 Million Tonne from 7.56 MT in the year-ago period.

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Tata Steel has clocked a consolidated net loss of Rs 6,511 crore in the second quarter (Q2) ended September, the PTI reported. The home-grown steel major has posted Rs 1,297 crore net profit in the year-ago period, the company said in a regulatory filing. According to report, the steel firm's total income dropped to Rs 55,910 crore from Rs 60,206 crore in the year-ago quarter.

Tata Steel's total expenses stood at Rs 55,853 crore in Q2 against Rs 57,684 crore a year-ago period. Net debt stands at Rs 77,032 crore, while it has spent Rs 4,553 crore on capital expenditure (Capex) in Q2 and Rs 8,642 crore for the April-September period.

The Tata-owned steel company in a statement said its crude steel output declined to 7.31 Million Tonne (MT) from 7.56 MT in the year-ago period. The company said it deliveries trimmed to 7.07 MT from 7.23 MT. According to the statement, the 5 MTPA expansion in Kalinganagar and 0.75 MTPA EAF (electric arc furnace) project in Punjab are under implementation.

From its India business perspectic, the company posted revenues of Rs 33,922 crore and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) was Rs 6,841 crore, while Europe clocked revenues of 1,812 million pounds and EBITDA loss stood at 242 million pounds. "We have assessed the potential impact of the EAF-based decarbonisation project and restructuring in the UK. We have taken an impairment charge of Rs 12,560 crore in standalone financial statements and Rs 2,746 crores in consolidated financial statements," the company said. "In addition, we have taken a charge towards restructuring and other provisions of Rs 3,612 crore in consolidated financial statements," it said.

Tata Steel Netherlands has been working intensely with the Netherlands government on the contours of the decarbonisation project covering emission and health standards and will shortly be submitting the detailed decarbonisation proposal, the company said. Tata Steel will also enter into an agreement to source 379 MW of renewable power for India operations, which will enable reduction of 50 million tonnes of carbon emissions over a period of 25 years, the company said.

T V Narendran, CEO and MD at Tata Steel, said, "Our retail sales to home builders continue to grow, aided by our strong distribution network Tata Steel Aashiyana, the e-commerce platform, services more than 10,000 unique customers per month." He said, "We plan to invest in a state-of-the-art scrap-based EAF with government support in the UK and this will enable reduction of 50 million tonnes of direct carbon emissions over a decade."