Tata Steel rose 1.15% to Rs 340 at 9:51 IST on BSE after the company said it won a contract to supply rail tracks and steel sleeper plates to UK-based Network Rail for at least five years.
The company made the announcement after market hours on Monday, 21 October 2013.
Meanwhile, the BSE Sensex was up 48.71 points, or 0.23%, to 20,942.60.
On BSE, 2.34 lakh shares were traded in the counter compared with average volume of 13.69 lakh shares in the past one quarter.
The stock hit a high of Rs 340.80 and a low of Rs 334.50 so far during the day. The stock hit a 52-week high of Rs 448.10 on 7 January 2013. The stock 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 21 October 2013, rising 11.90% compared with the Sensex's 3.11% rise. The scrip had also outperformed the market in past one quarter, gaining 39.45% as against Sensex's 3.69% rise.
The large-cap company has an equity capital of Rs 971.21 crore. Face value per share is Rs 10.
Tata Steel, Europe's second largest steelmaker, has won a contract to supply rail track and steel sleeper plate to Network Rail for at least five years.
Network Rail, the company set up to operate and maintain Britain's rail infrastructure, has chosen to source more than 95% of its rail from Tata Steel until 2019, with the option to extend this until 2024, Tata Steel said in statement.
The contract could see Tata Steel, which employs 18,500 people in the UK, supplying more than a million tonnes of rail for Britain's passenger and freight lines, the company said.
Since 2000 more than 160 million pounds has been invested in Tata Steel's advanced rail manufacturing facilities at its Scunthorpe site to enable it to produce the 216-metre long rail customers want. Alongside this investment, Tata Steel has transformed the manufacturing logistics to handle the new long rail products required by customers such as Network Rail.
The latest Network Rail deal will account for around 5% of the annual steel output from Tata Steel's Scunthorpe site, the company said.
Tata Steel's consolidated net profit jumped 90.5% to Rs 1139.01 crore on 3% decline in net sales to Rs 32550.21 crore in Q1 June 2013 over Q1 June 2012.
Tata Steel is a top ten global steel maker and the world's second most geographically diversified steel producer.
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