Tata Steel, on Thursday i.e. 13th of August, reported a net loss of Rs 4,648.13 crore for this June quarter of financial year 20-21. It had reported a loss of 1,615.35 crore in the March quarter and a profit of Rs 714.03 crore in the June quarter of financial year 19-20
Total revenue from operations fell to Rs 24,288.51 crore in Q1 financial year 20-21 against Rs 33,769.95 crore sequentially and Rs 35,947.11 crore year-on-year.
The management stated its operating level has recovered to 90 percent by June 30 and has since then increased further to 95 percent.
The company stated, “India’s average steel realisations were lower due to the COVID impact during Q1. About Rs 2,000 crore of costs were under absorbed due to the lower volumes and have been charged to the profit and loss account.”
Despite the tremendous drop in margins, there was a reduction in net debt of Rs 1,677 crore in India, including a reduction of Rs 577 crore and Rs 291 crore at Tata Steel BSL and Tata Steel Long Products, respective companies.
The management said that given the current uncertain economic environment, it has built up a liquidity buffer of Rs 20,144 crore, including Rs 14,178 crore of cash and other cash equivalents.