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Tata Steel has moved higher by 5% to Rs 718 on BSE in noon deal, extending its Friday’s nearly 2% gain after the company reported nearly five-fold jump in a consolidated net profit of Rs 11.35 billion for the third quarter ended December 2017 (Q3FY18), on the back of higher revenues mainly from domestic operations.
The company had reported a net profit of Rs 2.31 billion in the third quarter of 2016-17. The company’s consolidated net sales in the period under review were at Rs 330.9 billion, up 14.4% from the same period last year, as domestic operations showed a stronger contribution to the total sales. EBITDA (earnings before interest, tax, depreciation and amortization) margin improved to 17.3% from 12.6% in previous year quarter. Tata Steel Europe posted lower EBITDA mainly due to higher maintenance expenditure and lower yields during the planned outages, the company said. Analyst at Antique Stock Broking maintains ‘hold’ rating on the stock as the brokerage house expects domestic steel demand is expected to remain strong at around 5% levels with growth across major consuming segments. At 01:52 pm; the stock was trading 4.4% higher at Rs 714 on BSE, as compared to 0.53% rise in the S&P BSE Sensex. A combined 11.14 million shares changed hands on the counter on BSE and NSE.