Tata Steel - Q2 FY13 Results First Cut - Microsec

Tata Steel Ltd announced its Q2FY13 results on 9th November, 2012.

Tata Steel Ltd, India's biggest producer of the metal, posted an unexpected second-quarter loss as weak demand in Europe and China cut prices of the alloy, and employee and power costs increased. The company arrived at consolidated net sales of INR33,867.32 crore, which was up by just 4.18% and 0.95% on YoY and QoQ basis. The EBITDA for the quarter was INR2310.08 crore, which was significantly down by 16% and 32.12% on YoY and QoQ basis. The EBITDA Margin was down by 161bps and 329bps on YoY and QoQ basis. The company posted consolidated net loss of INR363.93 crore, despite a one-time gain of INR42.68 crore. A global economic slowdown and overcapacity had forced steel mills to cut prices, squeezing earnings. The price of global benchmark hot-rolled coil that Tata Steel produces, used in making cars and home appliances, averaged 19% lower in the last quarter, because of slowing sales in Europe and weak Chinese demand.

Source : Equity Bulls

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