One of the biggest companies of India made a statement about the unprofitability
In the beginning of the quarter in the city-the metropolis of Mumbai was rocked by another sensation regarding the market industry.
Corporation Tata Steel that specializiruetsya in metallurgy, made a statement about the increase this year in the number of losses by 10 percent. The data indicated for the first reporting period 2016−2017. The situation this year has deteriorated compared to last year’s reporting period (same period last year). To some degree contributed to this sharp decline in the level of currency proceeds by 5.8 percent. Analysts said that the figure is much higher than expected.
Based on the results of the report, the income of a Corporation Tata Steel made 31,83 billion rupees. And this is when you convert into American currency would amount to approximately 476 million dollars. With all this, in spite of a decent income, total debt of metallurgists still increased. Today it is 819,75 billion rupees.
Assessment of the status of the Corporation’s financial debt one period 2016−2017 year increased by 1.71 billion rupees. And now sum of debt for the current quarter is 752,59 billion rupees. That is about eleven billion U.S. dollars. The total debt of Tata Steel Corporation, respectively, increased to 819,75 billion rupees.
But, despite this, the company claim that basic income from transactions on the European market (EBITDA) rose. Now it is of 8.56 billion rupees, according to the data available for the first reporting term. The basic flow of the company in accordance with the APPG consists of 5.78 billion rupees.
The increase in financial turnover of the company Tata Steel on the European market due to the success of Brexit and rapidly ruhnuvshie pound. In addition, a very significant role was played by increase of the company’s revenues in the Netherlands. Another issue rocked the stability of the company — the influx of Chinese products.
In General, now for the company had fallen on hard times. In addition to financial losses, in the near future, the closure of plants in Europe.
Tata Steel hopes to combine its production capacity with the leading industries in Europe, organizing active negotiation campaign. Perhaps only support from the authorities can help the company stay afloat. Otherwise, the global giant threatens to ruin.
On Monday, shares of Tata Steel, like many other companies went down. In a few hours the rate of the BSE Sensex 30 index decreased by five and a half percent.