Tata Steel falls into red in FY 2014-15
India-headquartered steel giant Tata Steel Group has issued its group financial results including Tata Steel Europe for the fourth quarter and the full financial year 2014-15 ended March 31.
In the fourth quarter, Tata Steel Group registered a net loss of INR 56.7 billion ($890.9 million), compared to a net profit of INR 10.4 billion in the same quarter of the previous financial year, while the company’s sales revenue decreased by 20.7 percent year on year to INR 336.6 billion ($5.3 billion).
During the full financial year, Tata Steel posted a net loss of INR 39.3 billion ($281.25 million), compared to a net profit of INR 36 billion in the financial year 2013-14, while its sales revenues amounted to INR 1.39 trillion ($21.9 billion), decreasing by 6.08 percent year on year. In FY 2014-15, steel deliveries of the group amounted to 26.32 million mt, declining by one percent year on year.
Tata Steel said that in FY 2014-15 the volume output from its European operations was stable, despite being constrained by demand and operational issues. The turnover was lower due to reduced sales prices. According to Tata Steel, the Indian steel industry witnessed subdued demand across steel consuming industries. There was a surge in low-priced imports especially from China, Japan and South Korea, which led to a sharp correction in steel prices especially during the last few months of the year
In the given period, Southeast Asian operations were affected by weak demand and a contraction in the rebar-scrap spread on the back of a significant increase in imports from China. Deliveries increased at NatSteel’s operations in Singapore though they declined in China. Tata Steel Thailand also recorded an increase in sales, including value-added domestic rebar sales, during the fourth quarter.