Tata Steel has rallied 7% at Rs 257 in opening deals after reporting a strong 87.5% year-on-year (yoy) surge in its consolidated net profit at Rs 1,121 crore for the quarter ended June 30, 2013 (Q1) on account of better-than-expected cost performance at its European operations.
The company had reported a profit of Rs 598 crore in year ago quarter and a loss of Rs 6,529 crore in preceding quarter.
Its net sales however, decreased 3.0% yoy to Rs 32,805 crore, while steel sales volumes increased 7.0% yoy to 6.01mn tones during the recently concluded quarter.EBITDA margins improved 80 bps yoy at 11.4% against 10.6% in the corresponding quarter of previous fiscal.
Analyst on an average had expected profit of Rs 183 crore and revenues of Rs 32,293 crore for the quarter.
This improvement was on the back of robust performance by the Indian operations and improved performance at the European operations, Tata Steel said in a release.
There have recently been encouraging signs of improving economic conditions in some European economies, the UK in particular, and we are poised to capitalise should these translate more strongly into increased demand from steel-intensive sectors, says Dr Karl-Ulrich Köhler, MD & CEO, Tata Steel Europe.
The stock opened at Rs 262 and hit a high of Rs 263 on BSE. A combined around 350,000 shares changed hands on the counter in opening deals on BSE and NSE.
The company had reported a profit of Rs 598 crore in year ago quarter and a loss of Rs 6,529 crore in preceding quarter.
Its net sales however, decreased 3.0% yoy to Rs 32,805 crore, while steel sales volumes increased 7.0% yoy to 6.01mn tones during the recently concluded quarter.EBITDA margins improved 80 bps yoy at 11.4% against 10.6% in the corresponding quarter of previous fiscal.
Analyst on an average had expected profit of Rs 183 crore and revenues of Rs 32,293 crore for the quarter.
This improvement was on the back of robust performance by the Indian operations and improved performance at the European operations, Tata Steel said in a release.
There have recently been encouraging signs of improving economic conditions in some European economies, the UK in particular, and we are poised to capitalise should these translate more strongly into increased demand from steel-intensive sectors, says Dr Karl-Ulrich Köhler, MD & CEO, Tata Steel Europe.
The stock opened at Rs 262 and hit a high of Rs 263 on BSE. A combined around 350,000 shares changed hands on the counter in opening deals on BSE and NSE.