Home Finance Tata Steel slides to a Q4 loss

Tata Steel slides to a Q4 loss

Tata Steel slides to a Q4 loss


Tata Steel’s consolidated net loss for the fourth quarter widened to ₹1,236 crore from a ₹1,166 crore loss in the third quarter and compared to a profit of ₹2,353 crore in the year-earlier period as the COVID-19 pandemic affected its local and overseas operations.

Revenue slumped 20% to ₹33,770 crore in the quarter.

On a standalone basis, the company reported a net loss of ₹563 crore compared with a net profit of ₹2,309 crore in the year-earlier period.

Challenging year

“FY20 has been a challenging year,” said T.V. Narendran, CEO & MD, Tata Steel.

“The Indian economy slowed down in the first half with key steel consuming sectors like automotive contracting sharply,” said Mr. Narendran. “While the economy began recovering in the second half, the outbreak of COVID-19 in end March led to an unprecedented disruption and heightened economic uncertainty. We have recalibrated our operations in line with the evolving business environment and are focused on conserving cash while actively de-risking the business,” he added.

The board has recommended a dividend of ₹10 per ordinary share of ₹10 each and ₹2.504 per partly paid ordinary share of ₹10 each (paid-up ₹2.504 per share) for the financial year 2019-20.

‘Conserving cash’

Tata Steel had net debt in excess of ₹1,04,000 crore as on March 31, 2020.

“Given the heightened uncertainty due to the COVID-19 pandemic, we are focused on conserving cash and ensuring adequate liquidity to face potential disruptions in the operating environment,” said Koushik Chatterjee, executive director and CFO, Tata Steel.

Reducing expenditure

“We have pivoted business decisions on cash flows and successfully driven cash neutrality in our operations by reducing spend, managing working capital and curtailing capital expenditure,” Mr. Chatterjee added.

“We have also raised additional funds of ₹4,900 crore to build a contingency buffer. Our liquidity at the end of the year remained robust at ₹17,745 crore, including cash and cash equivalents of ₹11,549 crore.”

Ahead of the results, Tata Steel shares declined 0.8% on the BSE to ₹321.25 in a weak Mumbai market on Monday, valuing the company at ₹36,812 crore.

You have reached your limit for free articles this month.

Subscription Benefits Include

Today’s Paper

Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Unlimited Access

Enjoy reading as many articles as you wish without any limitations.

Personalised recommendations

A select list of articles that match your interests and tastes.

Faster pages

Move smoothly between articles as our pages load instantly.

Dashboard

A one-stop-shop for seeing the latest updates, and managing your preferences.

Briefing

We brief you on the latest and most important developments, three times a day.

Not convinced? Know why you should pay for news.

*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.



Source Name – The Hindu