Tata Steel Long Products freezes at 20% upper circuit on robust Q2 results

The company reported a consolidated net profit at Rs 59 crore in Q2FY21, as against loss of Rs 197 crore in the year ago quarter

Shares of Tata Steel Long Products were locked in the 20 per cent upper circuit band at Rs 403 on the BSE on Wednesday in an otherwise weak market after the company reported a consolidated net profit of Rs 59.06 crore in July-September quarter (Q2FY21). The company, formerly known as Tata Sponge Iron, had posted net loss of Rs 197 crore in the year-ago quarter.

The company, engaged in manufacturing steel and allied products, reported 52 per cent year on year (YoY) growth in revenue from operations at Rs 1,186 crore in Q2FY21 as against Rs 653 crore in the corresponding quarter of the previous fiscal. It reported EBITDA (earnings before interest, taxes, depreciation, and amortization) of Rs 199 crore during the quarter, compared with loss of Rs 30 crore in the previous-year quarter.

During 2QFY21, the company said global economic activity started to recover with phased relaxations in lockdown measures. However, the pace of improvement has been varying across the geographies. The company, on its part, continues to stay focused on aggressively managing costs and cashflows.

"The company achieved the highest ever quarterly steel deliveries of 0.18 mn tons which translates into a 54 per cent quarter on quarter and 53 per cent YoY growth. We reduced exports to 31 per cent of overall deliveries in 2QFY21 and sharply ramped up domestic deliveries to 0.12 mn tons which translate to an increase of 138 per cent QoQ and 7 per cent YoY," it said.

The counter saw huge trading volumes as a combined 766,000 equity shares had changed hands on the NSE and BSE till 10:01 am. There were pending buy orders for 147,000 shares on both the exchanges. In comparison, the S&P BSE Sensex was down 0.70 per cent at 40,339 points level.