Tata Steel Ltd shares today surged nearly 7 per cent even as the company reported a consolidated net loss of Rs 6,528.51 crore for the quarter ended March 2013.
Bucking the weak results,shares of the company opened the day on a positive note and as the trade progressed it rose by 6.64 per cent to Rs 319.40 on the BSE.
At NSE,the scrip jumped 6.65 per cent to Rs 319.50.
The scrip was the top gainer on both Sensex and Nifty during afternoon trade.
“Tata Steel reported mixed set of results for Q4 FY2013 due to better-than-expected profitability performance from both its European and Indian operations,” Angel Broking said in a report.
Tata Steel had yesterday posted consolidated net loss of Rs 6,528.51 crore for the quarter ended March 31,following a non-cash write down of Rs 8,355.91 crore related to European operations and fall in demand in the euro-zone.
It had reported a consolidated net profit of Rs 433.46 crore in Q4 of 2011-12.
The company’s consolidated net sales rose less than one per cent during the quarter at Rs 34,180.05 crore vis-a-vis Rs 33,860.08 crore of January-March period of FY’12 due to subdued steel demand,particularly in Europe.
Tata Steel’s net profit from Indian operations also declined by over 16 per cent to Rs 1,309.21 crore during the quarter,while its net sales in India rose over 13 per cent at
Rs 10,602.88 crore.
According to the company,its total annual steel deliveries in the last fiscal were 24.13 MT,a little less than 24.22 MT of 2011-12. Deliveries during the last quarter
rose 5.6 per cent at 6.56 MT.
The company had also said that despite weak market demand,its Indian operations recorded robust performance due to ramp up of its 2.9 million tonnes per annum expansion. Its fourth quarter deliveries rose by 28.9 per cent at 2.28 MT,
while the annual deliveries were up 12.8 per cent to 7.48 MT in FY’13.
In the broader market,the BSE benchmark Sensex was trading at 19,693.15,up 18.82 points at 1300 hrs.
By the close of trade today,Tata Steel’s scrip were up 4.56 per cent at Rs 313.15 on the BSE. The stock rallied 6.64 per cent to Rs 319.40 during the day.
At NSE,the stock rose by 4.77 per cent to settle at Rs 313.85.
On the volume front,17.53 lakh shares exchanged hands on BSE,while more than 1.15 crore shares were traded on NSE.
The scrip was the best performer among blue-chips in the Sensex.
The BSE 30-share Sensex ended the day with a gain of 30 points at 19,704.33.
Tata Steel shares surge,Q4 operating profit beats forecast
(Reuters) Cyrus P. Mistry-led Tata Steel Ltd shares rose as much as 6.65 percent on Friday after its January-March quarterly operating profit beat analyst estimates.
Brokerage IDFC estimated Tata Steel posted an adjusted standalone operating profit of 33 billion rupees in the previous quarter,compared to its forecast of 27.6 billion rupees.
Tata Steel shares gained even as it posted a bigger-than-expected net loss,following a writedown.
Shares at the steel maker were up 2.8 percent as of 10.36 a.m.