Tata Steel Shares Jump 7% Amid High Volumes
Tata Steel shares jumped 7 per cent amid large volumes on Friday, a day after the company reported its quarterly earnings. The Tata Steel stock rose as much as 7 per cent to an intraday high of Rs 546.50 in morning deals on the National Stock Exchange (NSE). On the Bombay Stock Exchange (BSE), Tata Steel shares climbed as much as 6.77 per cent to Rs 545.50 apiece. Tata Steel was among the top three contributors to the gains on Sensex.
In a regulatory filing post-market hours on Thursday, Tata Steel said its consolidated net profit stood at Rs 2,295.25 crore for the quarter ended March 31. That marked a decline of 84.37 per cent compared to the net profit of Rs 14,688.02 crore for the corresponding period a year ago. Total revenue from operations came in at Rs 42,423.86 crore, up 25.87 per cent from the year-ago period.
For the financial year 2018-19, which ended on March 31, Tata Steel reported a net profit of Rs 9,098 crore, as against Rs 17,763 crore for the previous year.
Brokerage Edelweiss said Tata Steel surpassed its EBITDA estimates primarily due to better-than-expected performance of Tata Steel Europe.
Tata Steel said its EBITDA increased 33.41 per cent to Rs 7,814 crore in the quarter ended March 31. Tata Steel Europe revenue grew 2.2 per cent to Rs 16,565.06 crore in the fourth quarter of FY19.
Going forward, Edelweiss said it expects Tata Steel's performance to be driven by the more profitable domestic segment in a challenging operating environment.
Meanwhile, Tata Steel's European unit said a fire which broke out at its Port Talbot site in South Wales was under control and there were no major injuries. The Port Talbot site, which dates back to the early 1900s, was acquired by Tata Steel as part of its acquisition of Corus in 2007. Port Talbot is home to one of the two integrated steelmaking sites that the company operates in Europe.
At 10:37 am, Tata Steel shares traded 6.19 per cent higher at Rs 542.50 apiece on the BSE, outperforming the benchmark index Sensex which was up 0.15 per cent.
As much as 8.63 lakh Tata Steel shares had changed hands, as against a daily average of 3.74 lakh in the past two weeks, data from BSE showed.
