Mumbai: Shares of Tata Steel tumbled by over 5% in early trade on the bourses Friday after the company’s consolidated net profit plunged by 93% to Rs 139 crore in the second quarter of the current fiscal.
fter making a weak opening, shares of the company lost further ground and fell by 5.61% to Rs 423.60 on the Bombay Stock Exchange (BSE). Tata Steel was the worst performer among the 30 Sensex blue-chips during morning trade.
A file photo of a steel plant
In a similar fashion, the scrip fell by 5.46% to an early low of Rs 423.15 on the National Stock Exchange (NSE).
Hit by higher raw material costs and lower average selling prices across its European operations, Tata Steel reported a steep 93% fall in net profit to Rs 139 crore for the quarter ended 30 September.
The steelmaker had reported a profit of Rs 1,968.23 crore for the corresponding year-ago period.
Tata Steel’s results were announced Thursday, with the stock market closed in observance of ‘Gurunanak Jayanti’.