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Tata Steel jumps after Q4 results

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Tata Steel rose 4.07% to Rs 531.70 at 09:33 IST on BSE after consolidated net profit fell 84.37% to Rs 2,295.25 crore on 23.76% increase in net sales to Rs 41,186.44 crore in Q4 March 2019 over Q4 March 2018.

The result was announced after market hours yesterday, 25 April 2019.

Meanwhile, the S&P BSE Sensex was up 76.13 points, or 0.20% to 38,806.99.

On the BSE, 2.78 lakh shares were traded in the counter so far compared with average daily volumes of 3.74 lakh shares in the past two weeks. The stock had hit a high of Rs 533 and a low of Rs 516 so far during the day. The stock hit a 52-week high of Rs 646.70 on 21 September 2018. The stock hit a 52-week low of Rs 442.10 on 29 January 2019.

Results for the periods relating to current year include Tata Steel BSL starting 18 May 2018, hence not comparable with previous periods.

Tata Steel had a one-time exceptional gain of Rs 11,376 crore in Q4 March 2018, which boosted profit in the year-earlier period.

Tata Steel said production rose 26% to 7.21 million tonnes in Q4 March 2019 over Q4 March 2018.

The company said its gross debt decreased by Rs 8,781 crore during Q4 March 2019.

TV Narendran, CEO & Managing Director said, "Tata Steel continues to grow its footprint in India in terms of volumes, downstream capability and product portfolio. Our strategy of focusing on operational excellence, strong customer relationships, superior distribution network and brands is paying rich dividends. Despite subdued steel markets and weak growth in our key customer segments, this year our volumes in India grew by over 33% leading to a significant improvement in our overall profitability and cashflows. The proposed merger of Tata Steel BSL with Tata Steel will accelerate operational synergies and simplify our corporate structure."

Tata Steel's board considered and approved a merger of Bamnipal Steel and Tata Steel BSL (formerly Bhushan Steel) into the company by way of a composite scheme of amalgamation and have recommended a merger ratio of 1 equity share of 10/- each fully paid up of the company for every 15 equity shares of each fully paid up held by the public shareholders of Tata Steel BSL. As part of the scheme, the equity shares held by Bamnipal Steel and the preference shares held by the company in Tata Steel BSL shall stand cancelled. The equity shares held by the company in Bamnipal Steel shall also stand cancelled. The merger is subject to shareholders and other regulatory approvals.

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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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 26 2019. 09:34 IST