TATA STEEL: Focus is on improving cash flows of European operations

10/02/2021

After the setback of Sweden’s SSAB pulling out of talks to buy the Dutch units, Tata Steel is now focusing on improving cash flows of its European operations.

The Indian steelmaker will continue with the process to separate the Dutch and UK units of its European operations, the company said after announcing financial results for the third quarter ending December 31, 2020.
That Tata Steel will need to re-focus investments into Tata Steel Europe was evident from the third quarter results.

The Indian operations reported better-than-expected numbers, with the highest ever quarterly EBITDA of Rs 8,811 crore, more than doubling from the same quarter in the corresponding year. On the other hand, Tata Steel Europe posted loss of of Rs 724.27 crore at EBITDA level in Q3FY21 against Rs 956.30 crore in Q3FY20.The company has been in talks with the UK government for financial aid.

Industry observers have said the company would need to invest substantial amount in its European units to ensure lower carbon footprint, an issue that governments are keen on.

Facebook
LinkedIn
Call Now Button