Q2 Results: A Look At Companies That Reported Net Loss & Why? While Shrinking margins in Europe, restructuring and impairment charges were to be blamed for Tata Steel, Vedanta hints at adoption of a new tax rate and Adani Wilmar's profitability was impacted by loss in the edible oil segment

By Shrabona Ghosh

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Major corporate players such as Tata Steel, Adani Wilmar, Vedanta reported net loss in their second-quarter results. While Shrinking margins in Europe, restructuring and impairment charges were to be blamed for Tata Steel, Vedanta hints at adoption of a new tax rate and Adani Wilmar's profitability was impacted by loss in the edible oil segment.

Tata Steel

Tata Steel reported a consolidated net loss of INR 6,511 crore for the quarter ended September 30, 2023, as against a net profit of INR 1,297 for corresponding period a year ago. Shrinking margins in Europe, restructuring and impairment charges contributed to net loss.

"India business generated a higher margin of around 20 percent and EBITDA stood at INR 6,841 crores. In Europe, margins moderated especially in UK business while Netherlands business was broadly stable on a QoQ basis. Revenue per ton was lower in both geographies. However, improved costs in the Netherlands led to broadly similar margins. Given our plans to change the processed route for steelmaking, the existing heavy end assets at TSUK will only be used for a defined period. Accordingly, we have taken an impairment charge of INR 12,560 crores in the standalone financial statements. We have also taken a charge of INR 6,358 crores in consolidated financial statements in relation to the UK business," said Koushik Chatterjee, executive director and chief financial officer, flagging concerns in the European business.

So, how is the company aiming for a turnaround? "We continue to remain focused on cost optimisation, operational improvements and working capital management to maximise cash flows," he added.


Vedanta Ltd reported a consolidated net loss of INR 1,783 crore for the second quarter ended September 2023 on account of one-time exceptional items because of adoption of new tax rate. The consolidated income of the company in the July-September period increased to INR 39,585 crore from INR 37,351 crore in the year-ago period.

"I am pleased to share that we have a quarter of highest ever 2Q turnover of INR 38,546 crores with highest ever 2Q EBITDA of INR 11,834 crores on the back of strong operational volume delivery and aggressive cost reduction across the table in all businesses. We remain well positioned, with a rich diversified asset portfolio, strong balance sheet, and cost optimization levers, to withstand the challenging macroeconomic environment," said Arun Misra, executive director, Vedanta.

Adani Wilmar

Adani Wilmar, the consumer business unit of the Adani Group reported a net loss of INR 131 crore during the September quarter. For the same period last year, the company had reported a net profit of INR 48.76 crore. Revenue for the quarter, the Adani group firm said, fell 13 per cent year-on-year (YoY) to INR 12,267 crore compared with INR 14,150 crore in the corresponding quarter last year.

The company said its profitability was impacted by loss in the edible oil segment, which were primarily driven by divergent trends in the spot and future prices. While Adani Wilmar's edible oil business recorded Q2 revenue of INR 9,037.53 crore, the food and FMCG vertical posted revenue of INR 1,282.61 crore during Q2, and industry essentials segment revenue was at INR 1,947.01 crore.

Shrabona Ghosh


A journalist with a cosmopolitan mindset. I lead a project called 'Corporate Innovations' wherein I cover corporates across verticals and try to tell stories on innovations. Apart from this, I write industry pieces on FMCGs, auto, aviation, 5G and defense. 

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