Tata Steel gains after resolving pension issue in UK

Tata Steel rose 1.63% to Rs 240.45 at 15:07 IST on BSE after the company said its UK subsidiary resolved pension issue.

Meanwhile, the BSE Sensex was down 191.11 points, or 0.71%, to 26,844.74.

On BSE, so far 15.70 lakh shares were traded in the counter, compared with an average volume of 13.40 lakh shares in the past one quarter.

The stock hit a high of Rs 242.40 and a low of Rs 236.30 so far during the day. The stock hit a 52-week high of Rs 495.30 on 3 November 2014. The stock hit a 52-week low of Rs 200 on 29 September 2015.

 

The stock had outperformed the market over the past one month till 7 October 2015, rising 9.68% compared with 8.60% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 20.39% as against Sensex's 4.03% decline.

The large-cap company has an equity capital of Rs 971.22 crore. Face value per share is Rs 10.

Tata Steel announced after market hours yesterday, 7 October 2015, that the Trustee of the British Steel Pension Scheme (the Scheme) and Tata Steel UK (TSUK), an indirect subsidiary of Tata Steel have concluded the triennial actuarial valuation of the Scheme as at 31 March 2014.

As a result of measures agreed between the Trustee and TSUK and benefit changes implemented following consultation between TSUK, its employees and their representatives, the on-going residual deficit has been reduced from around 550 million pounds as at 31 March 2011 to 90 million pounds as at 31 March 2014.

Accounting impacts arising from the changes to the pension plan will be recorded in the company's accounts in due course, Tata Steel said in a statement.

Tata Steel's consolidated net profit jumped 126.2% to Rs 762.96 crore on 17.7% fall in total income to Rs 31220.93 crore in Q1 June 2015 over Q1 June 2014.

Tata Steel is one of the biggest global steel companies.

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