Shares of Tata Steel on Friday fell by more than 2 per cent after the company’s September quarter earnings failed to cheer investors. After falling 4.58 per cent to Rs. 215.25 during intra-day trade, shares of the company finally ended at Rs. 220.10, down 2.44 per cent on BSE. At NSE, shares settled with a loss of 2.28 per cent at Rs. 220.25.
The company’s market valuation declined by Rs. 533.55 crore to Rs. 21,376.45 crore. In terms of volume, 18.63 lakh shares of the company changed hands at BSE and over 99 lakh shares were traded at NSE during the day.
Tata Steel had on Thursday reported a 22 per cent rise in consolidated net profit for September quarter as gains from selling shares in group companies offset decline in sales from weakening prices. Net profit in July-September rose to Rs. 1,528.71 crore from Rs. 1,254.33 crore in the same period a year ago, the company had said in a regulatory filing.
Sales fell 18 per cent to Rs. 29,304.69 crore in July-September of this fiscal, from Rs. 35,777.11 crore in in the year-ago period. The company reported a sharp rise in other income mainly from sale of shares in Tata Motors and Titan for about Rs. 3,200 crore.
While the company’s India operations reported strong growth in production and deliveries in the September quarter, its European operations, particularly in the U.K., significantly worsened as Britain continues to witness a surge in imports and decline in competitiveness.
Tata Steel’s U.K. unit took a “significant impairment charge” for its Strips operation and is continuing to assess options for its long-products business, the statement said.