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Home STOCKS Tata Steel posts Rs 1,096 crore Q4 internet loss: Critical takeaways

Tata Steel posts Rs 1,096 crore Q4 internet loss: Critical takeaways

Mumbai: Steel maker Tata Metal swung to a web loss in the quarter ended March on Monday, in comparison to a net profit in the exact same quarter a calendar year in the past.
The enterprise posted a consolidated internet loss of Rs 1,095.68 crore for the quarter ended March 31, compared with a net profit of Rs 2,430.92 crore in the corresponding quarter very last 12 months.
In this article are the crucial takeaways from Tata Steel’s March quarter benefits:
Revenue dropsConsolidated revenue of the company declined 20.40 for each cent yr-on-year (YoY) to Rs 33,769.95 crore in Q4FY20, above Rs 42,423.86 crore in Q4FY19.
DividendThe board advised a dividend of Rs 10 per regular share of Rs 10 every and Rs 2.504 for each partly paid standard share for the fiscal 12 months ended March 31.
Metal production rises sequentiallyThe consolidated steel production improved by 5 for every cent QoQ to 7.37 million tons and deliveries stood at 6.50 million tons. India steel production enhanced by 6 for every cent QoQ to 4.73 million tons although deliveries stood at 4.03 million tons.
Covid-19 impactOperations at the group’s steel building facilities in India have been scaled down from the conclude 7 days of March 2020 because of to the lockdown, Tata Steel claimed. It further added that the group’s overseas functions in Europe, South East Asia and Canada have also been scaled down in excess of several intervals and are being operated as for each the local tips, anywhere permitted.
“The lockdown has adversely impacted the group’s sales volume, mix and realisations in the numerous geographies it operates. In the course of the present quarter, such impression was minimal only to the later section of March 2020. However, with the continuance of lockdown all through the very first quarter of the monetary calendar year 2021, the group’s operation remained adversely impacted,” Tata Metal mentioned.
Outlook“While there will be a sharp fall in volumes in 1QFY21, we are observing early indications of recovery and remain poised to leverage our position on normalization of organization conditions,” MD & CEO T V Narendran reported in a release.
“FY20 has been a tough calendar year. The Indian economic climate slowed down in the initial 50 percent with important metal consuming sectors like automotive contracting sharply. When the economic system began recovering in the second half, the outbreak of Covid-19 in conclusion March led to unprecedented disruption and heightened economic uncertainty. We have recalibrated our functions in line with the evolving business enterprise environment and are centered on conserving cash while actively derisking the enterprise,” he extra.
Management commentary“Given the heightened uncertainty due to the Covid-19 pandemic, we are focused on conserving cash and guaranteeing enough liquidity to deal with opportunity disruptions in the operating setting. We have pivoted small business selections on cashflows and productively pushed cash neutrality in our operations by minimizing invest, running working capital and curtailing capital expenditure. We also lifted additional resources of Rs.4,900 crores to build a contingency buffer. Our liquidity at the stop of the yr remained sturdy at Rs.17,745 crores like cash and cash equivalents of Rs.11,549 crores,” claimed ED & CFO Koushik Chatterjee.
European opsIn 4QFY20, revenues declined by 2 per cent QoQ to Rs 13,588 crores although EBITDA improved to Rs 65 crores in comparison to EBITDA loss of Rs 956 crores in 3QFY20.
Capex curtailedGiven the unsure business natural environment, capex is staying curtailed sharply and restricted to basic safety and sustenance initiatives, the corporation said introducing that the capex designs will be revisited in H2 or when business enterprise conditions normalize.

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