Tata Steel gains after good Q3 numbers

Tata Steel rose 1.65% to Rs 477.30 at 9:40 IST on BSE after consolidated net profit rose 54.33% to Rs 1753.07 crore on 22.33% rise in net sales to Rs 40457.11 crore in Q3 December 2018 over Q3 December 2017.

The result was announced after market hours on Friday, 8 February 2019.

Meanwhile, the S&P BSE Sensex was down 112.47 points, or 0.31% to 36,434.01.

On the BSE, 2.69 lakh shares were traded in the counter so far compared with average daily volumes of 5.82 lakh shares in the past two weeks. The stock had hit a high of Rs 480.45 and a low of Rs 470.50 so far during the day. The stock hit a 52-week high of Rs 720.60 on 14 February 2018. The stock hit a 52-week low of Rs 442.10 on 29 January 2019.

Consolidated adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose 27% to Rs 7,225 crore in Q3 December 2018 over Q3 December 2017.

The liquidity position of the group remained robust at Rs 19,320 crore comprising of Rs 8,549 crore in cash and cash equivalents and Rs 10,771 crore in undrawn bank lines, the company added.

Commenting on the results, CEO & managing director TV Narendran said despite a sharp drop in international steel prices, Tata Steel was able to maintain its overall realizations and increase its volumes significantly in India. The integration of Tata Steel BSL continues and its 5 MTPA expansion at Tata Steel Kalinganagar is also making good progress. The company is also looking forward to enhancing its long products and downstream capability through the acquisition of the 1 mtpa steel business of Usha Martin. The phase II review of the TSE ThyssenKrupp JV is ongoing and the company is closely working with the European Commission to facilitate the same. In line with the company's strategy of divesting non-core assets and focusing on India, the firm has announced a divestment of a 70% stake in its SEA business and it continues to work on exploring similar opportunities across its portfolio.

Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 33 million tonnes per annum (MTPA). It is one of the world's most geographically-diversified steel producers, with operations and commercial presence across the world.

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