New Delhi: Tata Steel started off the financial year 2016-17 on a weak note with the consolidated quarterly loss widening 10-fold to Rs. 3,183 crore compared with Rs. 317 crore in same period last fiscal, dented by discontinued operations (include sale of Scunthorpe assets to Greybull Capital).
In a company statement, it said, "Loss from discontinued operations of Rs. 3,296 crore recognized on account of divestment of Long Steel UK Limited. The sale was completed during the quarter."The revenue has also missed the analysts expectations, falling 5.8 percent to Rs. 26,406 crore in the quarter ended June 2016 against Rs. 28,025 crore in year-ago period.
Profit was expected at Rs. 292 crore on revenue of Rs. 29,110 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.On strategic developments in Europe business, the firm said that Tata Steel UK is currently progressing with the divestment of the specialty steel business and the pipe mills in Hartlepool.It further continues to be in discussion with industry players to explore options for a strategic collaboration through a potential joint venture.
Tata Steel said net debt stood at Rs. 75,259 crore at the end of June quarter, higher by Rs. 4,171 crore over Q4FY16 while there was strong liquidity position with cash and cash equivalents including drawn and undrawn bank lines of Rs. 12,746 crore.