Tata Steel shares rise over 4% on strong Q3 result
New Delhi: Shares of Tata Steel Ltd rose more than 5% in morning trade on Monday after the company reported a five-fold jump in its third quarter profit.
Tata Steel had on Friday reported a five-fold rise in consolidated net profit to Rs1,135.92 crore for the third quarter ended 31 December. It had posted a consolidated net profit of Rs231.90 crore in the same quarter of last fiscal.
Tata Steel shares closed 4.22% higher at Rs712.50 on BSE. In intraday trade, shares rose 5.2% to Rs718. The Sensex closed 0.87% higher at 34,300.47 points.
The consolidated income during October-December quarter increased to Rs33,672.48 crore, from Rs29,154.75 crore in the year-ago period.
Over the last nine months, Tata Steel delivered strong consolidated operational performance across geographies and the firm expects this momentum to continue as markets are expected to remain favourable, its CEO and MD T V Narendran said.
“Globally, steel prices have been buoyant with improved trade position in China along with cost push from raw materials...In India, we have witnessed strong volume growth across the verticals as well as an increase in realisations,” Narendran added.
The company’s executive director and CFO Koushik Chatterjee said that Tata Steel group revenues witnessed robust growth driven by improved volumes in India and stronger realisations across geographies, on the back of improvement in commodity prices.