steel
Tata Steel rose 2.71% to Rs 253.60 at 9:19 IST on BSE after consolidated net profit jumped 126.17% to Rs 762.96 crore on 15.23% fall in total income to Rs 31062.50 crore in Q1 June 2015 over Q1 June 2014.

The result was announced after market hours yesterday, 11 August 2015.

Meanwhile, the BSE Sensex was down 133.94 points, or 0.48%, to 27,732.15.

On BSE, so far 3.70 lakh shares were traded in the counter, compared with an average volume of 8.09 lakh shares in the past one quarter.

The stock hit a high of Rs 256.20 and a low of Rs 251.15 so far during the day. The stock hit a 52-week low of Rs 245.25 on 31 July 2015. The stock hit a 52-week high of Rs 554 on 19 August 2014.

The stock had underperformed the market over the past one month till 11 August 2015, falling 12.12% compared with 0.74% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 34.48% as against Sensex’s 1.30% rise.

The large-cap company has an equity capital of Rs 971.22 crore. Face value per share is Rs 10.

Tata Steel’s bottom line in Q1 June 2015 was boosted by a surge in non-operational income and also due to one-time and exceptional items. The operating performance was weak. The company’s earnings before interest, taxation, depreciation and amortization (EBITDA) after adjusting one-time and exceptional items fell 35.28% to 2799 crore in Q1 June 2015 over Q1 June 2014. Tata Steel’s non-operational income or other income jumped 252.62% to Rs 762.17 crore in Q1 June 2015 over Q1 June 2014.

Consolidated steel deliveries fell to 6.33 million tonnes in Q1 June 2015 from 6.46 million tonnes in Q1 June 2014.

Tata Steel said that there was significant import of steel into India during the quarter which depressed local steel prices. Tata Steel’s turnover from its Indian operations fell 13.12% to Rs 9094 crore in Q1 June 2015 over Q1 June 2014.

T V Narendran, Managing Director of Tata Steel India and South East Asia, said that the Indian steel industry continued to bear the brunt of a surge in imports and tepid domestic demand which led to a sharp drop in steel prices over the quarter. Phased commissioning of the 3 MTPA greenfield expansion project at Kalinganagar has started and the company is gearing up to commence commercial production in second half of year ending 31 March 2016.

With regard to European operations, Tata Steel said that the European operations’ liquid steel production and deliveries, both, increased by more than 7% on year-on-year basis in Q1 June 2015, reflecting the more stable operating platform. But surging EU imports, especially from China, and, in the case of the UK operations, the appreciation of sterling against the euro, led to lower turnover and EBIT for the European operations, Tata Steel said. The company is combating these headwinds by progressing market differentiation strategy, improving cost base and shifting focus increasingly from volume to value, the company said.

At the EBIT level, the European operations of Tata Steel reported a loss of Rs 124 crore in Q1 June 2015 as against profit of Rs 136 crore in Q1 June 2014. EBITDA of Tata Steel’s European operations fell 42.21% to Rs 575 crore on 13.91% decline in turnover to Rs 17855 crore in Q1 June 2015 over Q1 June 2014.

Tata Steel Group is among the top-ten global steel companies.