Tata Steel’s losses have narrowed down to ₹3,213 crore for the fourth quarter of FY2016, as compared to a loss of ₹5,674 crore in the corresponding quarter last year. This is because provision for impairment came down significantly to ₹1,724.18 crore in the March 2016 quarter, as compared to ₹4,475.92 crore in the March 2015 quarter.
Revenues declined 12 per cent from ₹33,666 crore to ₹29,508 crore during the period.
Factors affecting sectorThe company said it was impacted by the global steel environment facing headwinds from sluggish global trade, China’s slowdown, weak investment sentiment from lower oil and other commodity prices, and volatile financial markets. “Slow pace of capacity re-balancing with deteriorating demand led to mill utilisation levels reaching multi-year lows, before recovering towards the fag end,” the company said in a presentation. “There was a drop in realisations across the Group as steel prices slid to 10-year lows,” it said.
The Company declared an equity dividend of ₹8 per share.
Tata Steel also announced the start of commercial production at the 3MTPA Kalinganagar Steel Plant. The stabilisation process is currently underway. The facility will produce flat steel for high-end applications, enabling the company to expand its product portfolio in the ship building, defence equipment, energy and power, infrastructure, and aviation sectors.
‘Market share consolidated’TV Narendran, Managing Director of Tata Steel India and South-East Asia, said: “Tata Steel recorded its highest ever sales at 9.54 mt in FY16 and successfully consolidated its market share despite extremely challenging market conditions. Sales in Q4 increased by 16 per cent, with strong growth in key segments such as automotive and branded products.”
The company, however, did not disclose the names of the bidders for its UK plant, though it said that bids from seven entities were being evaluated.