Indian steelmaker Tata Steel announced a loss for the second quarter on Wednesday, due to allegations related to the restructuring of its UK activities and a decline in sales and prices.
The company’s consolidated net loss was 65.11 billion Indian rupees ($782.24 million) for the three months ended September 30, compared with a profit of 12.97 billion rupees a year ago.
Total operating income fell 7% to IDR 556.82 billion.
Tata Steel, which has an annual crude steel production capacity of 35 million tonnes, said it has taken a charge of Rs 63.58 billion on a consolidated basis in connection with the restructuring of its UK business.
In September, the company agreed a £1.25 billion deal with the UK government to decarbonise its Port Talbot site, which is expected to impact 3,000 jobs.
Tata Steel said it has begun informal discussions with union representatives to explain the impact of the restructuring proposal.
The Unite union said on Wednesday it had called on the British government to “immediately intervene” against the layoff plans.
Tata Steel Managing Director TV Narendran had warned in July that steel prices would fall in the July-September quarter in India and Europe.
Domestic companies JSW Steel and Jindal Steel and Power posted profits in the second quarter thanks to lower costs and strong sales, despite falling steel prices. ($1 = 83.2351 Indian rupees) (Reporting by Sethuraman NR in Bengaluru; Editing by Shilpi Majumdar)
