Tata Steel lost 3.56% to Rs 218.10 at 09:19 IST on BSE after the company posted consolidated net loss of Rs 2127.23 crore in Q3 December 2015 compared with net profit of Rs 157.11 crore in Q3 December 2014.
The result was announced after market hours yesterday, 4 February 2016.Meanwhile, the S&P BSE Sensex was up 46.61 points or 0.19% at 24,385.04
On BSE, so far 2.53 lakh shares were traded in the counter as against average daily volume of 10.61 lakh shares in the past one quarter. The stock hit a high of Rs 220 and a low of Rs 215 so far during the day. The stock had hit a 52-week high of Rs 393.25 on 4 February 2015. The stock had hit a 52-week low of Rs 200 on 29 September 2015.
The large-cap company has equity capital of Rs 971.22 crore. Face value per share is Rs 10.
Tata Steel's consolidated total income fell 16.6% to Rs 28135.18 crore in Q3 December 2015 over Q3 December 2014. Earnings before interest, taxation, depreciation and amortization (EBITDA) excluding one-offs and profit on sale of investments declined 69.96% to Rs 838 crore in Q3 December 2015 over Q3 December 2014. Tata Steel's bottomline was hit by exceptional loss of Rs 712 crore in Q3 December 2015. Turnover fell 16.63% to Rs 28039 crore in Q3 December 2015 over Q3 December 2014.
T V Narendran, Managing Director of Tata Steel India and South East Asia said that steel markets in India have been affected by depressed international steel prices and predatory imports. The quarter saw a sharp decline in steel prices which has impacted the margins, Narendran said.
Koushik Chatterjee, Group Executive Director (Finance and Corporate) said that the current business conditions for the global steel industry are extremely challenging with confluence of elevated imports across regions, currency headwinds and depressed market sentiments affecting Tata Steel Group's profitability. The Tata Steel Group has embarked on significant cost rationalisation program including fixed cost reduction, right sizing of manpower, productivity management and enriching the product mix across all geographies, Chatterjee said. These programs are expected to enhance the sustainable profitability profile of the company, he added. The company has also undertaken significant portfolio restructuring and will continue to pursue the same in the future, Chatterjee said.
Tata Steel is Europe's second largest steel producer. The combined Tata Steel group is largest steel producer in the world.
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