Quarterly loss for Tata Steel widens to Rs 3,183 crore

Quarterly results for Tata Steel suggest the company is facing some serious issues. The EBITDA is up by 21 per cent. The consolidated loss for Tata Steel has widened to Rs 3,183 crore compared with Rs 317 crore in similar period last fiscal.

The loss was a result of discontinued operations (Rs 3,296), which included sale of Scunthorpe assets to Greybull Capital. Revenues for the company are down by 5.8 per cent to Rs 26,406 crore in the quarter ended June 2016 against Rs 28,025 crore YoY. 

However, a good performance is seen with consolidated EBITDA margins expanding by 21.4 percent YoY to Rs 3,270 crore as the operating performance has improved across India, Europe and South East Asia. 

The stock is up by almost 54.83 per cent over a 1 year period, thus outperforming the broader markets.Over the same period Sensex is up by almost 17 per cent. Owing to correction in global markets the metal stocks have corrected sharply in the trading session on September 12. Tata Steel after taking cues from markets corrected by almost 5.30 per cent or Rs 20.90 per share on  September 12.