Tata Steel reported a consolidated net loss of 1,229 crore for the quarter ended December 31, 2019, due to headwinds in European business. The steel major had posted a consolidated profit of Rs 1,753 crore in the corresponding period last fiscal.
Tata Steel's consolidated revenues declined 8.58 per cent to Rs 35,520 crore during Q3 FY20, as compared to Rs 38,854 crore in the year-ago period. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) shrunk more than 45 per cent on annual basis in the quarter under review to Rs 3,659 crore, as opposed to Rs 6,726 crore in the year-ago period.
The company's gross debt during December quarter this fiscal was Rs 1,09,867 crore, whereas net debt stood at Rs 1,04,628 crore.
"Our liquidity remains robust at Rs 14,027 crore, comprising of cash and cash equivalents of Rs 5,239 crore and undrawn bank lines of Rs 8,788 crore," Tata Steel said in a filing to the bourses.
Commenting on the financial results for December quarter, Tata Steel CEO TV Narendran said that the company 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. Both our acquisitions, Tata Steel BSL and Tata Steel Long Products, continue to deliver operational improvements and achieve milestones in the market place," he said.
"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 further added.