Tata Steel: India business rebound in September quarter leads peers

Firm prospects in India and restructuring of European operations to improve Street sentiment further

Tata Steel’s September quarter (Q2) results, reported on Friday, brought double cheer to the Street.

Not only did the firm’s India business rebound significantly and beat expectations, per-tonne profitability also surpassed most peers — aided by the rising demand and realisation environment.

The steel major’s announcement on initiation of discussion with Sweden’s SSAB, for the restructuring of its Europe business, comes as an additional boost. A successful deal will reduce concerns over the weak prospects of its European operations, and help pare debt.

Consequently, Tata Steel’s global depository receipts have risen nearly 6 per cent on the London Stock Exchange, since Friday. In