Tata Steel spurted 6.45% to Rs 256.70 at 9:25 IST on BSE after consolidated net profit jumped 90.46% to Rs 1139 crore on 3% fall in turnover to Rs 32805 crore in Q1 June 2013 over Q1 June 2012.
The result was announced after market hours on Tuesday, 13 August 2013.
Meanwhile, the BSE Sensex was up 54.40 points, or 0.28%, to 19,284.24.
On BSE, 6.33 lakh shares were traded in the counter compared with average volume of 9.25 lakh shares in the past one quarter.
The stock hit a high of Rs 263 and a low of Rs 255.10 so far during the day. The stock hit a 52-week high of Rs 448.10 on 7 January 2013. It hit a 52-week low of Rs 195.40 on 7 August 2013.
The stock had underperformed the market over the past one month till 13 August 2013, sliding 8.24% compared with the Sensex's 3.65% decline. The scrip had also underperformed the market in past one quarter, falling 21.03% as against Sensex's 2.35% fall.
The large-cap steel major has an equity capital of Rs 971.21 crore. Face value per share is Rs 10.
This improvement was on the back of robust performance by the Indian operations and improved performance at the European operations, Tata Steel said.
Earnings before interest, taxation, deprecation and amortization (EBITDA) rose 4.85% to Rs 3755 crore in Q1 June 2013 over Q1 June 2012. The EBITDA margin edged up to 11.4% in Q1 June 2013, from 10.6% in Q1 June 2012.
Group steel deliveries in Q1 June 2013 were 6.08 million tones, lower than 6.56 million tonnes in Q4 March 2013, and higher than 5.68 million tonnes in Q1 June 2012.
Cash and cash equivalents as on 30 June 2013 were Rs 10178 crore and net debt was Rs 61289 crore. Total liquidity including undrawn credit lines was Rs 17144 crore.
Commenting on the first quarter results, Tata Steel Managing Director, Mr HM Nerurkar said: "The Indian operations delivered a steady performance in a subdued market environment with deliveries growing at an enhanced pace over the comparable period of last year. Our retail focus, customer relationship and brand building efforts are supporting growth despite increased competition in the market place and we are intensifying our focus on efficiency improvements and delivering enhanced value to our customers. Work on the greenfield project in Odisha continues in full swing. The South East Asian operations are robust and we continue to invest in improving the underlying performance."
Tata Steel Europe MD & CEO Dr Karl-Ulrich Kler said: "Our European facilities recorded higher production volumes after we completed some major plant refurbishment last year, which gave us a more stable production platform and greater operational flexibility. As a result we are better placed to supply our customers with the high-quality steel they demand. We see signs that our strategy is enhancing bottom-line performance, despite continued subdued European demand. There have recently been encouraging signs of improving economic conditions in some European economies, the UK in particular, and we are poised to capitalise should these translate more strongly into increased demand from steel-intensive sectors."
Tata Steel is a top ten global steel maker and the world's second most geographically diversified steel producer.
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