Tata Steel posts Q2 loss of 49.38 crore

One of the world’s largest steel maker, Tata Steel has posted its second quarter earnings post market hours on Friday, November 11, 2016. Company has posted a net loss of Rs 49.38 crore for the quarter ending September 30 as against profits of Rs 1528.71 crore in the corresponding period of the last fiscal.

Total income from operation has declined by 10 per cent year-on-year at Rs 26371 as against Rs 29304.7 crore in Q2FY16. Sales were lower due to the effect of rains all over the country in the second quarter along with the competitive pressure in the country, which led to further fall in sales.

On the operational front, Tata Steel has managed to stage recovery and performed well as EBITDA stands at Rs 2969.99 crore as compared to Rs 1830.49 crore i.e representing a positive growth of 62.25 per cent on a year-on-year basis. Good performance operationally was archived due to cost efficiency measures undertaken by the company.

Finance cost has increased by 28.83 per cent to Rs 1351.06 crore vis-à-vis Rs 1048.74 crore, catalysed by a huge debt in the company’s books. Net Debt for the company stands at Rs 75,563 crore at the end of September 30.