Tata Steel lost 3.02% to Rs 378.35 at 09:49 IST on BSE after consolidated net profit dropped 45.1% to Rs 503.24 crore on 0.25% fall in total income to Rs 36754.38 crore in Q3 December 2013 over Q2 September 2013.
The Q3 result was announced after market hours on Tuesday, 11 February 2014.
Meanwhile, the S&P BSE Sensex was up 71.05 points or 0.35% at 20,434.42
On BSE, so far 4.16 lakh shares were traded in the counter as against average daily volume of 7.65 lakh shares in the past one quarter.
The stock hit a high of Rs 388.05 and a low of Rs 377.50 so far during the day. The stock had hit a 52-week high of Rs 435.40 on 2 January 2014. The stock had hit a 52-week low of Rs 195.40 on 7 August 2013.
The stock had outperformed the market over the past one month till 11 February 2014, rising 1.52% compared with the Sensex's 1.9% fall. The scrip had also outperformed the market in past one quarter, jumping 8.36% as against Sensex's 0.62% fall.
The large-cap company has equity capital of Rs 971.21 crore. Face value per share is Rs 10.
Tata Steel reported a consolidated net profit of Rs 503.24 crore in Q3 December 2013 as compared to a net loss of Rs 763.06 crore in Q3 December 2012. Total income rose 14.3% to Rs 36754.38 crore in Q3 December 2013 over Q3 December 2012. The improved and steady performance of operations across geographies led to this significantly improved group performance, Tata Steel said.
Tata Steel's earnings before interest, taxation, depreciation and amortization (EBITDA) increased to Rs 3921 crore in Q3 December 2013 from Rs 3784 crore in Q2 September 2013 and rose significantly from Rs 2252 crore in Q3 December 2012. Cash and cash equivalents as on 31 December 2013 was Rs 6371 crore and net debt was Rs 70129 crore.
Tata Steel group's steel deliveries were at 6.38 million tonne in Q3 December 2013 as compared to 6.48 million tonne in Q2 September 2013 and 5.83 million tonne in Q3 December 2012.
Tata Steel said that Indian operations maintained the steady performance despite weak macroeconomic environment and maintenance shutdowns at Jamshedpur. The operational improvement continued in Europe as the upgraded asset base produced the largest volume of liquid steel on a like-for-like basis for more than five years. The South East Asian operations were partly affected by the political instability at Thailand. However, the operations stabilised in Singapore while the facilities in China were ramped up, the company said.
Mr T V Narendran, Managing Director of Tata Steel India and South East Asia, said: Indian steel markets continued to remain weak during the quarter with the economy and most of the steel consuming sectors facing severe headwinds. Against this macro backdrop, Tata Steel continued to post steady growth in sales volume for the quarter and the year to date. In fact, sales would have been higher if not for production constraints due to planned shut downs for maintenance. We continue to work closely with our OE customers while enhancing our product portfolio and spreading our reach across India for sale of branded products in retail. We are hopeful that the sentiment improves in the seasonally strong fourth quarter and with the shutdowns now behind us, Tata Steel should achieve robust operational improvement. The underlying performance of the South East Asian operations remains strong though there has been some impact of the political instability in Thailand.
Dr Karl-Ulrich Kler, MD & CEO of Tata Steel in Europe, said: The asset base we restored and upgraded last year has been running at stable rates, which has led to the continued year-on-year turnaround in financial performance. The work to enhance our product and service profile and our focus on cost and cash flow continued, supporting the year-on-year improvement in EBITDA, despite lower margins. With European economic indicators improving, these efforts will better enable us to benefit from any growth in European steel demand, which remains at historically low levels.
Mr Koushik Chatterjee, Group Executive Director (Finance and Corporate), said: The market conditions continue to be challenging in all geographies with contracted spreads between steel realisations and raw material prices. Under these conditions, Tata Steel Group was able to report consistent earnings performance in the nine months, on the back of higher volumes primarily in India, differentiated and downstream product strategy across all geographies and better margin management. We have been able to stabilise the gross debt levels excluding the translation impact even as we continue to execute the planned capex especially on the greenfield project in Odisha which remains a key priority for the company. We have spent around Rs 3900 crore during the quarter and about Rs 12300 crore in the nine months on essential and critical projects. Liquidity management remains a key focus area with Rs 6400 crore of cash and cash equivalents. In addition, we have undrawn term facilities for the Odisha project."
Tata Steel is among the top-ten global steel companies with an annual crude steel capacity of over 29 million tonnes per annum (mtpa). It is the world's second-most geographically-diversified steel producer, with operations in 26 countries and a commercial presence in over 50 countries.
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