Tata Steel rose 0.83% to Rs 327.05 at 10:00 IST on BSE after the company trimmed losses in Q4 March 2016.
The result was announced after market hours yesterday, 25 May 2016.Meanwhile, the BSE Sensex was up 144.83 points, or 0.56%, to 26,026.
On BSE, so far 1.78 lakh shares were traded in the counter, compared with an average volume of 11.14 lakh shares in the past one quarter. The stock hit a high of Rs 328.35 and a low of Rs 320.50 so far during the day. The stock hit a 52-week high of Rs 364.15 on 21 April 2016. The stock hit a 52-week low of Rs 200 on 29 September 2015. The stock had underperformed the market over the past one month till 25 May 2016, falling 6.68% compared with 0.79% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 30.76% as against Sensex's 12.64% rise.
The large-cap company has an equity capital of Rs 971.22 crore. Face value per share is Rs 10.
Tata Steel reported consolidated net loss of Rs 3213.76 crore in Q4 March 2016 compared with consolidated net loss of Rs 5674.29 crore in Q4 March 2015. Tata Steel's total income fell 12.33% to Rs 29636.69 crore in Q4 March 2016 over Q4 March 2015.
Tata Steel announced the start of commercial production at the 3 million tonnes per annum (mtpa) Kalinganagar steel plant. The stabilisation process is currently underway. The facility will produce flat steel for high end applications enabling the company to expand its product portfolio in the ship building, defence equipment, energy & power, infrastructure, and aviation sectors. It will also consolidate Tata Steel's leadership position in the domestic automotive segment.
Tata Steel Group recorded a 9% increase in deliveries for Q4 March 2016, largely driven by higher sales in India. Tata Steel Europe saw stable operational performance and deliveries in Q4 increased by 6% compared to Q3 December 2015. In response to the import and price pressure, a tactical decision was made to focus on higher-value sales in the UK, rather than volume. There was a drop in realisations across the Group as steel prices slid to 10-year lows. However, despite these challenges, the consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) increased in Q4 March 2016 on the back of higher deliveries and better operating margins in India, cost benefits from European restructuring and improved performance of the South East Asia operations.
The company continued to divest its non-core assets and raised Rs 4478 crore through monetisation of same.
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Given the challenging situation faced in Europe, the company has taken several steps to restructure the European operations. Tata Steel UK signed an agreement with Greybull Capital to sell its Long Products Europe business. The deal will be completed once a number of outstanding conditions have been resolved, including transfer of contracts, certain Government approvals and the satisfactory completion of financing arrangements. The Tata Steel Europe board under the advise of the Tata Steel board is actively reviewing all options for the Tata Steel UK Business including a potential sale of the business.
Mr T V Narendran, Managing Director of Tata Steel India and South East Asia, said that sales in Q4 March 2016 increased by 16% with strong growth in key segments such as automotive and branded products. Cost improvement initiatives and downstream value addition across product/market segments remain an area of focus. The Kalinganagar facility is stabilizing fast and will enable to further consolidate presence in existing 'high' end market segments with additional volumes in the year ending 31 March 2017 (FY 2017), he added.
Mr Koushik Chatterjee, Group Executive Director (Finance and Corporate), said that while the pressure on the product prices continued during Q4 March 2016 both in India and in Europe, operations during the quarter were very resilient across most of the geographies and have reported much improved underlying performance compared to the previous quarter. The subsidiaries and affliates of the Tata Steel Group have also reported improved performance and have contributed to the consolidated earnings. While government intervention against unfairly priced imports in India has helped markets stabilise, the UK steel operations continued to be exposed to volatile currency and low priced imports into the country.
Tata Steel announced that the board of directors of the company recommended a dividend of Rs 8 per share for the year ended 31 March 2016 (FY 2016).
Tata Steel is Europe's second largest steel producer, with steelmaking in the UK and Netherlands, and manufacturing plants across Europe. The combined Tata Steel group is one of the world's largest steel producers, with a steel capacity of more than 28 million tonnes and 80,000 employees across five continents.
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