India-headquartered steel giant Tata Steel Group has issued its group financial results including Tata Steel Europe for the first quarter of the financial year 2016-17, ended June 30.
Tata Steel Group recorded a net loss of INR 31.8 billion ($475 million) in the first quarter, compared to a net loss of INR 3.17 billion in the corresponding period of the previous financial year. The group's fourth quarter sales amounted to INR 264 billion ($3.9 billion), decreasing by 12.3 percent year on year.
Tata Steel stated that Tata Steel UK is currently progressing with the divestment of the Specialty Steel business and the pipe mills in Hartlepool. The shortlisted bidders are being given access to due diligence and management meetings. As disclosed earlier, Tata Steel Europe continues to be in discussion with industry players to explore options for a strategic collaboration through a potential joint venture. Appropriate disclosure in the regard will be made in due course.
According to the company’s statement, in India the second quarter results are expected to be affected by lower demand from large steel consuming sectors such as construction and capital goods as well as seasonal sluggishness due to monsoons. Demand is expected to pick up post-monsoon while supply side pressures from domestic steel companies is likely to cap realizations and keep industry mill utilization levels under check. Meanwhile the EU economy is expected to continue to grow gradually though UK’s stronger growth may slow down following the referendum result. Tata Steel expects supply pressures from imports to continue.