The Indian giant reportedly lost 32.9 billion rupees when it sold its European long products division, based in North Lincolnshire, to Greybull Capital in April for a nominal sum.
According to reports, Tata Steel made a net loss of 31.8 billion rupees for the three months to 30 June. Tata Steel’s total loss was 1.4 billion rupees less than the loss stated for the previous quarter, meanwhile analysts had projected a profit of almost 1.9 billion rupees.
The company’s spokesman said in a statement that recent shakeup and saving in the UK, along with weaker sterling, had helped the trade to report better performance for the period.
After the sale of the long products business, Tata Steel Europe would concentrate on being a premium strip player and would also focus on enhancing its performance. “The strategy for exploring further strategic consolidation in Europe is a step in that direction,” he said.
Tata however cautioned that the Brexit vote could affect economic growth in the UK, adding: “The weaker pound is expected to improve UK’s short-term competitive position on exports, however it will add cost pressure due to higher cost of raw materials purchased in US dollars.”
An Indian giant company still maintains the Port Talbot steel works in Wales, which employs more than 4,000 workers, and some 2,000 more at other plants in Hartlepool, Rotherham and Stocksbridge.
The company announced back in March that it would sell some or all of its remaining UK business, Tata updated in July that it was putting that process on hold while it chased a European tie-up.
One of the major stumbling blocks to the sale of the UK business has been the inheritance of the British steel pension fund that Tata innate when it bought the business in 2007. The fund has 130,000 members and a deficit of £700m.
The Company said recently that talks about the pension shortfall were ongoing with all relevant parties together with the UK Government, trustees and unions.