Tata Steel shares fell four percent in early trade on May 30, after the Tata Group firm reported 64 percent fall in net profit for the quarter ended March.
Tata Steel reported 64 percent decline in Q4 net profit (attributable to owners) at Rs 611.48 crore amid lower steel realisations and poor performance in the steelmaker's international operations.
The company had reported net profit of Rs 1,704.86 crore in the same quarter a year ago.
The consolidated revenue from operations for the Tata Group company during the January-March quarter fell 6.7 percent to Rs 58,687.3 crore as compared to Rs 62,961.5 crore recorded in the year-ago period.
At 10 am, Tata Steel's stock price was quoting at Rs 167.85 on the NSE, lower by 3.7 percent compared to the previous day's close.
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The company's sales were driven by higher dispatches in domestic markets, increased dispatches in auto grade and special grade steel, higher volumes from the branded and retail segment.
Jefferies retained its buy call, issuing a target price of Rs 200 per share. The brokerage said the sequential uptick in EBITDA, at Rs 6,631 crore, was seven percent above its estimates.
Morgan Stanley also said the Tata Group's EBITDA came ahead of its expectations, led by better-than-expected performance in domestic and overseas businesses. The brokerage reiterated its equal-weight call with a price target of Rs 135 per share.
Meanwhile, Tata Steel has approved the proposal to infuse funds up to $2.11 billion (Rs 17,407.50 crore) into a wholly-owned subsidiary T Steel Holdings (TSHP) Singapore to repay debt and to support the restructuring costs at Tata Steel UK.
Last month, Tata Steel announced that it will proceed with its
£1.25-billion investment to build an electric arc furnace in Port Talbot, replacing two blast furnaces and commence closure of the existing heavy end assets in the following months.
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