Tata Metaliks (TML) and Tata Steel Long Products (TSLP) have posted a net loss of Rs123.6mn ($1.64mn) and Rs1.3bn ($17.50mn) in Q1FY21 (April-June), respectively.
In the prior-year period, Tata Metaliks had posted a net profit of Rs196mn. In Q1 2021, however, COVID-19 related disruptions impacted operations. TSLP in Q1 2020 had posted a net loss of Rs739mn ($9.85mn).
TML had to suspend production and dispatch operations in March 2020 after the government announced a nationwide lockdown. By the end of April, the company restarted limited dispatches. In May, the company resumed hot metal production through one of its blast furnaces, while the other one restarted in June as the Indian government announced the ‘begin again’ phase. The company achieved pre-COVID production levels in mid-June.
The company recorded a revenue of Rs2.1bn ($28mn), down by 58pc from Rs4.99bn ($66.5) and its EBITDA stood at Rs112.5mn ($1.49mn).
In Q1, the company’s pig iron sales were 32,105mt, down by 55pc from 71,577mt in the prior-year quarter. Duct Iron (DI) pipe sales in the quarter registered a 49pc fall to 27,144mt from 53,626mt. The company expects DI pipe sales to remain under pressure for the next few months. Deliveries will increase gradually. Additionally, it believes increased government spending on infrastructure would be the key driver for the recovery in the near term.
Tata Steel Long Products
The company’s revenue declined by 7.31pc to Rs6.5bn ($87.05mn), from Rs7.04bn in the prior-year quarter.