Tata Steel shares firm up 4% on robust Q1 earnings
Mumbai: Shares of Tata Steel on Wednesday ended nearly 4 percent higher after the company reported better-than-expected results, with its consolidated net profit surging 90.51 percent during the April-June quarter.
After surging 9 percent to Rs 263 in intra-day trade, the stock finally ended at Rs 249.80, up 3.59 percent on the BSE. At the NSE, the stock ended 3.25 percent higher at Rs 249.25.
In terms of volume, 30.74 lakh shares of the company changed hands on the BSE, while over one crore shares were traded at the NSE.
Tata Steel had yesterday said its consolidated net profit zoomed 90.51 percent to Rs 1,139 crore during the April-June quarter, primarily due to deferred tax gain of Rs 415 crore.
The company had reported net profit of Rs 597.88 crore in the April-June quarter of 2012-13 fiscal.
Improved performances at the company's operations in India and Europe also contributed to the earnings spurt.
Its net sales during Q1, 2013-14, were down 3 percent to Rs 32,550.21 crore largely due to continuous slump in the global steel demand. Tata Steel had reported net sales of Rs 33,547.73 crore in the year-ago period.
"Tata Steel reported a healthy set of Q1FY14 numbers driven by higher realisations QoQ coupled with better-than-expected sales volumes from Indian operations.
"European operations also reported a robust operational performance supported by higher contractual realisations sequentially, which led to positive surprise on the margins front for Tata Steel Europe," brokerage ICICIdirect.Com said in a note.