Tata Steel Net Loss Further Widened in Q4 Fiscal 2020

SEATTLE (Scrap Monster): Tata Steel reported consolidated financial results for the quarter and the full year ended 31^st March, 2020.

For the full year FY20, the company’s net profit reported substantial decline by 75%, falling from ₹9187.29 crore in FY19 to ₹2336.69 crore. The huge fall was mainly on account of the failed joint venture with Thyssenkrupp aimed at combining European operations, coupled with notable slump in demand in the Indian market.

Tata Steel reported consolidated net loss of â‚¹1,236.17 crore during the final quarter of fiscal 2020, down significantly upon comparison with net profit of â‚¹2,353 crore in the same period last year. The net loss was far higher than market estimates. The operating revenues dipped marginally from ₹35,520 crore in the prior year quarter to ₹33,769 crore in Q4 fiscal 2020. Also, the consolidated steel production and deliveries stood at 28.46 million tons and 26.68 million tons respectively.

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The India steel production edged higher by 8% over the previous year to 18.20 million tons in FY20. Meantime, steel deliveries surged higher by 4% year-on-year to 16.97 million tons. The revenue from Indian operations totalled INR 82,125 crores for FY20. The EBITDA margin stood at 21.5%.

Meantime, liquid steel production from European operations declined marginally to 10.26 million tons in FY20. The notable decline in European steel prices and lower deliveries dragged the revenues to INR 55,939 crores.