India-headquartered steel giant Tata Steel Group has issued its group financial results including Tata Steel Europe for the third quarter and the first nine months ended December 31 of the financial year 2015-16.
Tata Steel Group recorded a net loss of INR 21.27 billion ($314.98 million) in the third quarter, compared to a net profit of INR 1.57 billion in the corresponding period of the previous financial year. The group's third quarter sales amounted to INR 280.39 billion ($4.15 billion), decreasing by 16.6 percent year on year.
In the first nine months, Tata Steel achieved a net profit of INR 1.64 billion ($24.29 million), compared to a net profit of INR 17.49 billion in the first nine months of the previous year, while its sales revenues decreased by 17.2 percent year on year to INR 876.44 billion ($12.99 billion). In the first nine months of the current financial year, steel deliveries of the group amounted to 18.98 million mt, decreasing by 1.4 percent year on year.
According to Tata Steel, the steel markets in India have been affected by depressed international steel prices and predatory imports. Tepid demand among steel consuming sectors has further exacerbated the problem. The third quarter saw a sharp decline in steel prices which has impacted the company’s margins. To realign itself with the new market realities, Tata Steel is sharpening its focus on effective management of costs.