Tata Steel Posts Bigger-than-Expected Loss for Second Quarter
India's biggest producer of steel, Tata Steel Ltd., after posting a much-bigger-than-expected loss for the year's second-quarter, has predicted a "trend reversal" in the second half, on the back of reduced costs and production cuts at its Corus Group Ltd. European unit.
For the three months up-to September 30, Tata Steel posted a net loss of 27.1 Billion Rupees ($584 Million), as opposed to the profit of 47.7 Billion Rupees posted for the same period last year. The actual figures of the loss have beat the analysts' estimate by a large margin. Bloomberg News had surveyed 6 analysts who pegged the total loss at 12 Billion Rupees.
Total sales for the third-quarter fell by 43%, to 252.7 Billion Rupees.
"Tata Steel's performance will improve as Europe may witness a recovery next year", said Bharath S, an analyst with Sundaram BNP Paribas Asset Management Co., which owned 517,585 Tata Steel shares as of September 30.
Shares of Tata Steel, which had more than doubled so far this year, fell 3.5% to 543.70 Rupees after the revelation of third-quarter figures.