Tata Steel shares surge nearly 7% in early trade
Mumbai: Shares of Tata Steel on Friday surged nearly 7 percent even as the company reported a consolidated net loss of Rs 6,528.51 crore for the quarter ended March 2013.
Bucking the weak results, shares of the company opened the day on a positive note and as the trade progressed it rose by 6.64 percent to Rs 319.40 on the BSE.
At NSE, the scrip jumped 6.65 percent to Rs 319.50.
The scrip was the top gainer on both Sensex and Nifty during afternoon trade.
"Tata Steel reported mixed set of results for Q4 FY2013 due to better-than-expected profitability performance from both its European and Indian operations," Angel Broking said in a report.
Tata Steel had yesterday posted consolidated net loss of Rs 6,528.51 crore for the quarter ended March 31, following a non-cash write down of Rs 8,355.91 crore related to European operations and fall in demand in the euro-zone.
It had reported a consolidated net profit of Rs 433.46 crore in Q4 of 2011-12.
The company's consolidated net sales rose less than one percent during the quarter at Rs 34,180.05 crore vis-a-vis Rs 33,860.08 crore of January-March period of FY'12 due to subdued steel demand, particularly in Europe.
Tata Steel's net profit from Indian operations also declined by over 16 percent to Rs 1,309.21 crore during the quarter, while its net sales in India rose over 13 percent at Rs 10,602.88 crore.
According to the company, its total annual steel deliveries in the last fiscal were 24.13 MT, a little less than 24.22 MT of 2011-12. Deliveries during the last quarter rose 5.6 percent at 6.56 MT.
The company had also said that despite weak market demand, its Indian operations recorded robust performance due to ramp up of its 2.9 million tonnes per annum expansion. Its fourth quarter deliveries rose by 28.9 percent at 2.28 MT, while the annual deliveries were up 12.8 percent to 7.48 MT in FY'13.
In the broader market, the BSE benchmark Sensex was trading at 19,693.15, up 18.82 points at 1300 hrs.