India-headquartered steel giant Tata Steel Group has issued its group financial results including Tata Steel Europe for the second quarter and the first half ended September 30 of the financial year 2016-17.
In the second quarter, Tata Steel Group recorded a net loss of INR 490 million ($7.22 million), compared to a net profit of INR 56.09 billion recorded in the same quarter of the previous financial year. The group's second quarter sales revenues remained almost stable year on year at INR 274.71 billion ($4.05 billion). In the given quarter, steel deliveries amounted to 5.65 million mt, falling 3.25 percent year on year. In the same quarter, the group's EBITDA was INR 29.92 billion ($441.27 million), up 66 percent year on year, largely due to significant improvement in the operating performance at Tata Steel Europe.
In the first half of the given year, Tata Steel Group registered a net loss of INR 32.32 billion ($476.66 million), compared to a net profit of INR 52.93 billion in the first half of the financial year 2015-16, while the company's sales revenue decreased by 2.89 percent to INR 538.77 billion ($7.94 billion), both year on year. In the first half, Tata Steel Group’s EBITDA totaled INR 62.62 billion ($923.53 million), increasing by 44.8 percent year on year. Steel deliveries in the first half amounted to 11.06 million mt, falling 5.1 percent compared to the corresponding period of the previous financial year.
According to Tata Steel Group’s statement, Tata Steel Europe continues to be in discussion with Germany-based steelmaker ThyssenKrupp to explore options for a strategic collaboration through a potential joint venture, while the sale processes of Tata Steel UK’s Speciality Steels business and its Hartlepool pipe mills are ongoing. Regarding its Indian operations, Tata Steel Group stated that the operations and ramp-up at Tata Steel Kalinaganagar have been as per plan, which helped increase overall deliveries. However, due to the ramp-up phase in the first full quarter of operations, operating costs and margins were adversely affected.