A slowdown in demand in the West, higher input costs and lower prices saw Tata Steel post a net loss of Rs 2,200 crore in the quarter-ended June 30. The company had posted a net profit of Rs 3,900 crore in the same quarter last year.
“The loss reflects a continuous squeeze in demand in the United States and Europe,” said Ratan Tata, chairman, Tata Steel, which had acquired Europe’s second largest steelmaker, Corus, in 2007.
Though the company’s consolidated turnover fell to Rs 23,292 crore in the quarter, compared with Rs 43,496 crore in the corresponding period last year, its sales volume from India operations rose 22 per cent.
“The global recovery is expected to be slow and the company will continue to focus on operating performance and liquidity management. Overall, the Tata Steel Group is in a relatively good position because of our wide geographic reach and our strong position in the growing Indian market,” said B Muthuraman, MD, Tata Steel reiterating the company has strong liquidity and no material repayment obligations or refinancing for the next 12 months.