Tata Steel shares plunge 8% on Q2 loss
New Delhi: Shares of Tata Steel plunged on Tuesday nearly 8%, wiping out Rs3,234 crore from its market valuation, after the company reported consolidated net loss of Rs49.38 crore for the September quarter. The stock tumbled 7.80% to end at Rs393.55 on BSE. During the day, it had tanked 8.26% to Rs391.55.
On NSE, it dropped 7.84% to settle at Rs393.05. Following sharp decline in the stock, the company’s market valuation fell by Rs 3,233.82 crore to Rs 38,222.18 crore. In terms of volume, 8.28 lakh shares of the company were traded on BSE and over 92 lakh shares changed hands at NSE during the day.
Tata Steel had on Friday reported consolidated net loss of Rs49.38 crore for the September quarter on account of ramp-up effect at Kalinganagar facility and regulatory mining costs, among others. It had posted a net profit of Rs5,609.43 crore for the same quarter of last fiscal 2015-16.
Total consolidated income of the steel giant rose marginally to Rs27,471.15 crore in July-September quarter of the current fiscal, from Rs27,456.30 crore a year ago. However, the firm’s total expenses were lower at Rs25,968.85 crore, as against Rs26,988.65 crore.