Tata Steel jumps 6% on short covering

Shares of Tata Steel has pulled back and surged over 6% in early trades on Friday amid short covering and value buying at lower levels after the company reported profit for its Indian operations. The stock had corrected yesterday in tandem with the sharp fall in the market.

Tata Steel Ltd reported a net loss of Rs 6,528.5 crore for the quarter ended March 31 against a profit of Rs 433.5 crore in the corresponding period last year. The company recorded a goodwill write-down of Rs 8,356 crore in the quarter on account of its operations in Europe and Southeast Asia.

Income from operations stood at Rs 34,650 crore during the quarter against Rs 33,998 crore a year earlier. Total expenses were flat at Rs 31,751 crore versus Rs 31,912 crore in the year-ago period.

The Indian operations of Tata Steel reported a profit before tax of Rs 2,174 crore for the fourth quarter, compared with Rs 2,371 crore in January-March 2012. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) for Tata Steel India stood at Rs 3,714 crore in the quarter versus Rs 2,975 crore.

Over 300,000 shares changed hands on both the stock exchanges in the first 10 minutes of trade.