Tata Steel falls over 2% on fall in Q1 numbers
It attributed the drop in profit to losses from discontinued operations of Rs 3,296 crore recognised on account of disinvestment of Long Steel UK.
By ET Online | Updated:
NEW DELHI: Shares of Tata Steel fell over 2 per cent in morning trade on Wednesday after the steel firm reported a consolidated loss of Rs 3,183 crore for the June quarter later on Monday.
It attributed the drop in profit to losses from discontinued operations of Rs 3,296 crore recognised on account of disinvestment of Long Steel UK, whose sale was completed during the quarter. The steelmaker had reported a net profit Rs 317 crore for same quarter a year ago.
The company said it was in talks with industry players for strategic collaboration on Tata Steel Europe.
"Realisations in Q2 of FY17 are expected to be affected by lower demand from large steel-consuming sectors," the company said about the Indian market.
Jefferies' analysts too said they expect the company's India margins to fall in Q2, but expect margins to expand in Europe in the near term, thus raising their price target for the stock to Rs 319 from Rs 270.
As of Monday's close, the stock was up 43.6 per cent for the year, according to Reuters.
At 09:57 am on Wednesday, shares of the company were trading at Rs 365.90 apiece, down by 2.06 per cent from its previous close on the Bombay Stock Exchange ( BSE).
(With inputs from Reuters)
It attributed the drop in profit to losses from discontinued operations of Rs 3,296 crore recognised on account of disinvestment of Long Steel UK, whose sale was completed during the quarter. The steelmaker had reported a net profit Rs 317 crore for same quarter a year ago.
The company said it was in talks with industry players for strategic collaboration on Tata Steel Europe.
"Realisations in Q2 of FY17 are expected to be affected by lower demand from large steel-consuming sectors," the company said about the Indian market.
Jefferies' analysts too said they expect the company's India margins to fall in Q2, but expect margins to expand in Europe in the near term, thus raising their price target for the stock to Rs 319 from Rs 270.
As of Monday's close, the stock was up 43.6 per cent for the year, according to Reuters.
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At 09:57 am on Wednesday, shares of the company were trading at Rs 365.90 apiece, down by 2.06 per cent from its previous close on the Bombay Stock Exchange ( BSE).
(With inputs from Reuters)
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