Tata Steel firms up after good Q1 sales

Tata Steel rose 1.92% to Rs 564.80 at 9:23 IST on BSE after the company reported 8% rise in steel sales in India in Q1 June 2018 over Q1 June 2017.

The announcement was made after market hours on Friday, 6 July 2018.

Meanwhile, the S&P BSE Sensex was up 186.30 points, or 0.52% to 35,844.16.

On the BSE, 47,000 shares were traded in the counter so far compared with average daily volumes of 6.53 lakh shares in the past two weeks. The stock had hit a high of Rs 565.60 and a low of Rs 562 so far during the day. The stock hit a 52-week high of Rs 747.25 on 31 January 2018. The stock hit a 52-week low of Rs 512.31 on 21 July 2017.

On a provisional basis, Tata Steel posted an 8% growth in Q1 June 2018 sales led by its highest ever quarterly sales of automotive steels in India. Sales touched 2.97 million tonnes (mt) in Q1 June 2018 against 2.75 mt in same period last year.

Automotive and Special steels sales jumped to 557 KT in Q1 June 2018 due to stronger demand and new product approvals. The company said branded products and retail business achieved highest ever Q1 sales of 975 KT, registering a growth of 12% compared to 873 KT in Q1 June 2017. Additionally, overall engineering segments registered 70% growth year on year with 97 KT sales in Q1 June 2018 against sales of 57 KT sales in Q1 June 2017.

In Europe, Tata Steel sales grew marginally to 2.43 mt in Q1 June 2018 against 2.40 mt in Q1 June 2017 while production went up to 2.81 mt in Q1 June 2018 against 2.79 mt in the previous corresponding period on improved plant availability, Tata Steel said in a statement.

On a consolidated basis, Tata Steel reported net profit of Rs 14688.02 crore in Q4 March 2018 as against net loss of Rs 1168.02 crore in Q4 March 2017. Net sales rose 7.05% to Rs 35737.19 crore in Q4 March 2018 over Q4 March 2017.

Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 27.5 million tonnes per annum (MTPA) as on 31 March 2018. It is one of the world's most geographically-diversified steel producers, with operations in 26 countries and a commercial presence in over 50 countries.

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