Tata Steel shares slump nearly 5% post Q2 earnings report
Shares of Tata Steel Ltd went down by nearly 5% on Friday after the company’s September quarter earnings failed to cheer investors. The stock fell 4.58% to Rs 215.25 on BSE.
At NSE, shares of the company dropped 4.56% to Rs 215.10.
Tata Steel Ltd, on Thursday, reported a 22% rise in consolidated net profit for September quarter as gains from selling shares in group companies offset decline in sales from weakening prices.
Net profit in July-September rose to Rs 1,528.71 crore, from Rs 1,254.33 crore in the same period a year ago, the company had said in a stock exchange filing.
Sales fell 18% to Rs 29,304.69 crore in July-September of this fiscal, from Rs 35,777.11 crore in the year-ago period.
The company reported a sharp rise in other income, mainly from sale of shares in Tata Motors and Titan for about Rs 3,200 crore.
While the company’s India operations reported strong growth in production and deliveries in the September quarter, its European operations -- particularly in the UK -- significantly worsened as Britain continues to witness a surge in imports and decline in competitiveness.
Tata Steel’s UK unit took a “significant impairment charge” for its Strips operation and is continuing to assess options for its long-products business, the statement said.