Pritesh Jani of Religare Capital said, "we are entering an uncertain profitability scenario because of coking coal."
Tata Steel second quarter numbers were very disappointing and both India and its global business has performed badly, says Pritesh Jani of Religare Capital.
Last week the steel maker reported a net loss of Rs 49.38 crore for Q2 against a net profit of Rs 5,609.43 crore in the same quarter last fiscal.
Read more: Tata Steel in red again; posts Q2 net loss of Rs 49.38 cr
Jani said that the third quarter looks better than Q2 at the moment and it's the rising price of coking coal that is straining the company's margins.
He said, "We are entering an uncertain profitability scenario because of coking coal."
There will be more certainty after measures like anti-dumping duty comes in to play, he added.
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