Tata Steel shares drop 4 pc after Q1 earnings

Shares of Tata Steel on Thursday fell 4 per cent after the company posted a 63.6 per cent decline in consolidated net profit for the quarter ended June 30.

The scrip declined 3.77 per cent to close at Rs 367.40 on the BSE. During the day, it dropped 5.51 per cent to Rs 360.75 -- its 52-week low.

On the NSE, shares fell by 4 per cent to close at Rs 366.50.

The stock was the worst hit among the front-line companies on both the key indices during the day.

The company's market valuation fell by Rs 3,872.68 crore to Rs 42,100.32 crore on the BSE.

On the traded volume front, 12.70 lakh shares of the company were traded on the BSE and over two crore units on the NSE during the day.

Tata Steel on Wednesday posted 63.6 per cent decline in consolidated net profit at Rs 701.97 crore for the quarter ended June 30 on account of weak demand and higher input costs.

The company had posted a consolidated net profit of Rs 1,933.80 crore in the year-ago period, Tata Steel said in a BSE filing.

However, Tata Steel's consolidated total income during April-June quarter increased to Rs 36,198.21 crore as against Rs 35,846.92 crore in the year-ago period.

"The steel sector is facing significant headwinds which has affected spreads and overall profitability," Tata Steel CEO and Managing Director T V Narendran said.