Tata Steel Q4 Results: Steelmaker Posts Rs 1,096-Crore Loss Amid Low Prices, Covid-19 Woes

Tata Steel Ltd. reported a wider-than-expected loss as prices of steel fell and the company accounted for impairment due to Covid-19.Consolidated net loss stood at Rs 1,096 crore in the fourth quarter compared with a profit of Rs 2,430.9 crore in the same quarter a year ago, according to its exchange filing. Analysts tracked by Bloomberg had pegged a loss of Rs 91 crore.The steelmaker made a one-time provision of Rs 3,141 crore for the impairment of non-current assets that led to the higher loss.Revenue fell 20.4% year-on-year to Rs 33,769 crore—in line with the estimated Rs 33,774 crore.Operating profit fell 38% to Rs 4,647 crore.Margin narrowed to 13.7% from 17.7% earlier.Steel mills have been hit because of the government’s restriction on production and movement of people as it tries to prevent the virus’ spread. That has deepened the slump in demand for the alloy as new construction and purchases of cars and houses were delayed, leading to a fall in prices.Domestic hot-rolled coil prices fell by 8% over last year in the three-month period, hitting realisations.“The lockdown has adversely impacted the group’s sales volume, mix and realisations in the various geographies it operates,” Tata Steel said in the filing. “During the current quarter, such impact was limited only to the later part of March 2020. However, with the continuance of such lockdown during the first quarter of the financial year 2021, the group’s operation remained adversely impacted.”Tata Steel said it continues to monitor the situation and will take appropriate steps as necessary to scale up operations. Its U.K. operations is expected to be adversely impacted over its ability to continue as a going concern and meet liquidity requirements, the filing said.Tata Steel said that its European unit has adequate resources to continue operating for the foreseeable future.Shares of Tata Steel closed 0.82% ahead of the results while the benchmark BSE Sensex closed 0.6% down.

Tata Steel Q4 Results: Steelmaker Posts Rs 1,096-Crore Loss Amid Low Prices, Covid-19 Woes

Tata Steel’s net loss stood at Rs 1,096 crore in the quarter ended March.

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Tata Steel Q4 Results: Steelmaker Posts Rs 1,096-Crore Loss Amid Low Prices, Covid-19 Woes

Tata Steel’s net loss stood at Rs 1,096 crore in the quarter ended March.

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