Tata Steel shares tank 4% as Q3 profit lags market estimates

Shares of Tata Steel today fell by 4% after the company posted a consolidated net profit of Rs 503.24 crore for the October-December quarter, that lagged market estimates.

 

Tata Steel's stock ended 4.05% lower at Rs 374.35 on the BSE. During the day, the scrip tanked 4.31% to Rs 373.30.

 

At the NSE, the stock settled 4.09% lower at Rs 373.80.

 

"Tata Steel's consolidated Q3 FY14 net sales and operating profit were above our estimate but the net profit was below our expectations," Angel Broking said in a report.

 

Tata Steel yesterday posted a consolidated net profit of Rs 503.24 crore for the October-December quarter.

 

 

The company, however, said market conditions continue to be challenging in all geographies.

 

Tata Steel had clocked Rs 763.06 crore net loss in the October-December quarter last fiscal. However, it had logged Rs 917 crore net profit in the July-September 2013 quarter.

 

Total income of the company in the third quarter of this fiscal rose 14% to Rs 36,736 crore from Rs 32,107 crore on higher sales, which stood at 6.83 million tonnes (MT) from 5.83 MT a year earlier.