Tata Steel Shares Post Q1 Results
Tata Steel shares rose after recouping early losses after the company’s better-than-expected earnings for the April-June quarter
Tata Steel Share Price: Tata Steel shares rose after recouping early losses after the company’s better-than-expected earnings for the April-June quarter supported sentiment. In the early trade, the stock touched a low of Rs 114.35, but soon pared the losses and was trading at Rs 119.70, up 3.64 per cent on the BSE.
On the NSE, the stock opened at Rs 115, then fell to a low of Rs 114.35 and was later trading at Rs 117.95, up 2.12 per cent apiece.
The steel manufacturer’s consolidated net profit of Tata Steel plummeted 93 per cent year-on-year to Rs 525 crore in Q1. This downturn was primarily attributed to the performance of its Europe operations.
Comparatively, the company’s net profit in the same quarter a year ago was much higher at Rs 7,714 crore, and in the previous quarter (January-March 2023), it stood at Rs 1,566 crore.
Total income also declined to Rs 60,666.48 crore from Rs 63,698.15 crore in the year-ago quarter, a fall of 4.75 per cent. Tata Steel CEO & MD T V Narendran said during the quarter, global economic recovery continued to face headwinds affecting commodity prices including steel. In India, domestic steel demand continued to grow and was up around 10 per cent y-o-y but steel spot prices moderated in line with global cues.
“We saw strong growth in key segments such as branded products & retail and industrial products and projects which grew by 37 per cent and 24 per cent,respectively, on a y-o-y basis. Our retail sales majorly to individual home builders crossed 3 MT in the last 12 months and we now serve 8,000+ out of 19,100 pin codes in India,” he said.
Tata Steel on Monday said T V Narendran has been appointed again as the company’s Chief Executive Officer & Managing Director for a period of five years effective September 19, 2023.
In the first quarter, the steelmaker’s earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to Rs 6,122 crore. This represents a significant decrease from the EBITDA of Rs 15,047 crore reported in the same quarter of the previous year.
However, the company clarified that its adjusted EBITDA stood at Rs 6,238 crore after accounting for changes related to foreign exchange movements on intercompany debt, receivables, and the British Steel Pension Scheme (BSPS).
Brokerage firm Morgan Stanley also stated that the company’s EBITDA came ahead of the firm’s estimate led by better realisations but were still partially offset by higher operational expenditures. The firm has an ‘equalweight’ call for the stock with a price target of Rs 110.
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