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Tata Steel posts loss due to restructuring and falling sales

India's steelmaker Tata Steel posted a significant loss of 65.11 billion Indian rupees ($782.24 million) in the second quarter due to charges related to the restructuring of its UK operations and reduced sales.

Tata Steel posts loss due to restructuring and falling sales

This loss is in stark contrast to the profit of 12.97 billion rupees ($155.52 million) recorded in the same period the previous year. The company's total revenue from operations also decreased by 7% to 556.82 billion rupees ($641.35 million).

Tata Steel announced that it incurred a charge of 63.58 billion rupees on a consolidated basis due to the restructuring of its UK business; This includes a £1.25bn deal with the British government to decarbonise the Port Talbot plant, potentially affecting 3,000 jobs.

Union Unite has called on the UK government to intervene in the expected redundancies, while Tata Steel has opened informal talks with union representatives to explain the impact of its restructuring bid.

Despite the challenges faced by Tata Steel, local rivals such as JSW Steel and Jindal Steel and Power reported profits in the second quarter, driven by lower costs and strong sales despite the decline in steel prices.

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