Shares of five steel companies rose by 0.29% to 2.23% at 12:19 IST on BSE after global steel major ArcelorMittal said its first quarter net loss narrowed, helped by higher steel and iron ore shipments.
Steel Authority of India (SAIL) (up 2.23%), Jindal Steel & Power (up 0.98%), JSW Steel (up 0.94%), Tata Steel (up 0.78%) and Bhushan Steel (up 0.29%), edged higher.
The S&P BSE Sensex was up 394.79 points, or 1.77% at 22,738.83.
ArcelorMittal, the world's largest steelmaker by volume, said its first quarter net loss narrowed, helped by higher steel and iron ore shipments, prompting the company to reaffirm its full-year earnings guidance.
ArcelorMittal reported a net loss of $205 million, or 12 cents a share, in the three months ended 31 March 2014. This compares with a net loss of $345 million, or $0.21 a share, in the same period a year earlier.
First-quarter revenue rose 0.2% to $19.79 billion. The company's earnings before interest, taxes, depreciation and amortization rose 12% from a year earlier to $1.75 billion. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) rose due to a 21% increase in steel shipments to 21 million tons; a 27% rise in marketable iron ore shipments; and benefits from cost savings.
Based on its guidance framework, ArcelorMittal continues to anticipate 2014 EBITDA of approximately $8 billion.
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