Shares of Tata Steel and Steel Authority of India lost 0.54% to 2.22% at 11:42 IST on BSE on buzz that Jharkhand Government ordered closure of 12 mines, including the mines controlled by these two steel giants.
Steel Authority of India (down 2.22% at Rs 79.15) and Tata Steel (down 0.54% at Rs 517.50) declined.
Meanwhile, the S&P BSE Sensex was down 93.32 points or 0.34% at 26,964.09.
According to reports, the District Mining Office (DMO) of Chaibasa in Jharkhand has recently issued a closure notice to 12 of the 17 working iron ore mines in West Singhbhum, running under second and third subsequent deemed renewal. Jharkhand state has also issued notices to mines belonging to Steel Authority of India (SAIL) (Durgaiburu, Bhudaburu & Kiriburu), Tata Steel (Noamundi) and other merchant mines, reports added. These mines account for around 30% and 25% of total iron ore requirement of SAIL and Tata Steel (India), respectively, reports indicated.
SAIL's net profit rose 17.5% to Rs 529.88 crore on 10.8% growth in net sales to Rs 11195.68 crore in Q1 June 2014 over Q1 June 2013.
SAIL is among the five Maharatnas of the country's Central Public Sector Enterprises. Sail has five integrated steel plants, three special plants, and one subsidiary in different parts of the country. The Government of India (GoI) owns 80% stake in SAIL (as per shareholding pattern as on 30 June 2014).
On a consolidated basis, Tata Steel's net profit fell 70.4% to Rs 337.33 crore on 11% growth in net sales to Rs 36143.27 crore in Q1 June 2014 over Q1 June 2013. The company said the net profit was affected by exceptional charges of Rs 262 crore in Q1 June 2014.
Tata Steel Group is among the top-ten global steel companies with an annual crude steel capacity of over 29 million tonnes per annum. It is now the world's second-most geographically-diversified steel producer, with operations in 26 countries and a commercial presence in over 50 countries. Tata Steel's larger production facilities comprise those in India, the UK, the Netherlands, Thailand, Singapore, China and Australia.
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