Tata Steel Reports Rs 6,511 Crore Net Loss in Q2 - PTI

New Delhi, Nov 1 (PTI) Tata Steel on Wednesday reported a consolidated net loss of Rs 6,511.16 crore in the second quarter ended September.

It had clocked Rs 1,297.06 crore net profit in the year-ago period, the company said in a regulatory filing.

The company's total income declined to Rs 55,910.16 crore from Rs 60,206.78 crore in the year-ago quarter.

Its expenses stood at Rs 55,853.35 crore in the quarter under review against Rs 57,684.09 crore a year ago.

In a separate statement, Tata Steel said its crude steel production fell to 7.31 Million Tonne (MT) from 7.56 MT in the year-ago period. Deliveries also trimmed to 7.07 MT from 7.23 MT.

The company's net debt stands at Rs 77,032 crore, the statement said.

The company has spent Rs 4,553 crore on capital expenditure during the quarter and Rs 8,642 crore for the April-September period.

The 5 MTPA expansion at Kalinganagar and 0.75 MTPA EAF (electric arc furnace) project in Punjab are under implementation, it said.

From India business, the company posted revenues of Rs 33,922 crore and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) was Rs 6,841 crore, while Europe reported revenues of 1,812 million pounds and EBITDA loss stood at 242 million pounds.

"We have assessed the potential impact of the EAF-based decarbonisation project and restructuring in the UK. We have taken an impairment charge of Rs 12,560 crore in standalone financial statements and Rs 2,746 crores in consolidated financial statements," the company said.

"In addition, we have taken a charge towards restructuring and other provisions of Rs 3,612 crore in consolidated financial statements," it said.

Tata Steel Netherlands has been working intensely with the Government of Netherlands on the contours of the decarbonisation project covering emission and health standards and will shortly be submitting the detailed decarbonisation proposal, the company said.

Tata Steel Ltd will also enter into an agreement to source 379 MW of renewable power for India operations, which will enable reduction of 50 million tonnes of carbon emissions over a period of 25 years, the company said.

"Our retail sales to home builders continue to grow, aided by our strong distribution network Tata Steel Aashiyana, the e-commerce platform, services more than 10,000 unique customers per month," Tata Steel CEO & MD T V Narendran said.

In the UK, we plan to invest in a state-of-the-art scrap-based EAF with government support, and this will enable reduction of 50 million tonnes of direct carbon emissions over a decade.

In India, we are committed to responsible growth and are undertaking multiple initiatives ranging from scrap charging in blast furnace to greening the power mix, the company added.