Tata Steel corrects on profit taking

Tata Steel fell 2.01% to Rs 678.80 as the counter witnessed some bit of profit after a recent steep surge.

The stock surged 7.76% to Rs 693 in the previous session. The scrip has zoomed 77.69% in the past three months while the benchmark S&P BSE Sensex has added 23.66% during the same period.

The steel major on 1 January 2020 transferred the 51% stake it holds in Jamshedpur Continuous Annealing and Processing Company (JCAPCPL) and 50% stake it holds in Tata BlueScope Steel (TBSPL) to Tata Steel Downstream Products (TSDPL), a wholly owned subsidiary of the company.

The steel maker said that TSDPL has been identified as the anchor entity for downstream business. Accordingly, the company's investment(s) held in entities forming part of downstream business are being consolidated with TSDPL.

While disclosing Q2 September 2020 earnings, Tata Steel had announced that it was reorganizing its India footprint and folding listed and unlisted subsidiaries into four clusters to drive scale, synergies and simplification and to create value for all stakeholders. The business clusters are long products, downstream, mining and utilities & infrastructure.

Tata Steel reported 49.58% decline in consolidated net profit to Rs 1,665.07 crore on 7.4% increase in net sales to Rs 36,475.66 crore in Q2 FY21 over Q2 FY20.

The Tata Steel group is among the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum. It is one of the world's most geographically-diversified steel producers, with operations and commercial presence across the world.

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