Tata Steel owned Bhushan Steel posted a net loss of Rs5.015bn ($1.41mn) in the quarter ended Dec 2019, up from Rs2.36bn in the prior year period, according to their financial statement.
Weakened auto demand in the quarter resulted in the piling inventory, increasing the company’s losses. In the quarter, Bhushan Steel’s crude steel production was at 1.154mn mt, up 11pc from 1.039mn mt in the third quarter last year. The company produced 1,067mn mt crude steel in the previous quarter of the present fiscal year.
In the Mar-Dec 2019 period, the company’s crude steel production was at 3.343mn mt from 3,132mn mt in the prior year period.
Tata Steel acquired Tata Steel BSL, formerly known as Bhushan Steel through its wholly-owned subsidiary. The BSL plant has an annual capacity of 5.6mn mt. The company targets to expand this capacity to 8.3mn mt in the near term.
In the third quarter of the fiscal year 2020, the company’s net sales rose 1.82pc to Rs4736.78cr from Rs4652.16cr in the year prior. The consolidated income increased to Rs5,053.4crore from Rs4922.7cr in the year prior.