Shares of Tata Steel crashed over 4% to reach Tuesday's intraday low of ₹112.
What Happened: India's steel manufacturing giant posted a ₹2,223.8 crore loss in Q3FY23. It is a massive 123.33% drop from the ₹9,572.7 crore profit it booked in Q3FY22.
The company also said that its operating cost rose as it saw a rise in other expenses driven by "higher consumables, repairs, and rise in freight and handling charges."
The company's revenue also took a 5.73% hit this quarter at ₹57,354.2 crore. The company reported an EBITDA of ₹4,154 crore, down 75% year-over-year and 34% sequentially.
The company attributed the heavy downfall in EBITDA to "the compression in margins at European operations."
Talking about the company's performance in Europe, TV Narendran, Tata Steel CEO and MD said, "Our deliveries were lower in 9MFY23 due to slowdown in demand. Recession concerns weighed on steel prices, which coupled with elevated energy costs affected our performance.”
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The company also said that it estimates the slowdown in Europe to continue as European steel prices will be affected by seasonality and recessionary concern. It also predicts power and energy costs in Europe to remain elevated on tight natural gas markets.
However, In India going forward the company said that it sees a pickup in domestic demand across segments, export duty removal, and "government focus on infrastructure to drive supply–demand fundamentals."
Price Action: Tata Steel shares were trading 4.25% lower at ₹112.60 in the early hours of trading on Tuesday.
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