Shares of Tata Steel Long Products hit upper circuit of 20 per cent of on the BSE, in an otherwise weak broader market, on Wednesday after the company reported strong earnings during the September quarter. In contrast, the BSE Sensex was trading at 40,405, down 220 points or 0.54 per cent. The stock has rallied 150 per cent from its 52-week low of Rs 160.70 touched on March 24, 2020.
On Wednesday, Tata Steel Long Products shares opened trade at Rs 336 and surged as much as 20 per cent to Rs 403.20. The stock touched 52-week high of Rs 486.80 on January 2, 2020.
On the volume front, there was huge trading volume as 98,000 shares changed hands on the BSE as compared to two week average volume of 1,556 shares.
The company, formerly known as Tata Sponge Iron, reported a consolidated net profit of Rs 59.06 crore in July-September quarter compared to net loss of Rs 197 crore in the year-ago quarter. Net sales jumped 52.5 per cent year-on-year (YoY) to Rs 1,185.86 crore in Q2 FY21 as against Rs 653 crore in Q2 FY21. EBITDA (earnings before interest, taxes, depreciation, and amortisation) stood at Rs 199 crore compared with loss of Rs 30 crore in the previous-year quarter.
The company, engaged in the manufacturing of sponge iron, saw its total expenditure increase by 21.1 per cent to Rs 1,002.3 crore, while interest payments fell 21.8 per cent to Rs 62.79 crore in Q2 FY21. It recorded the highest ever quarterly steel deliveries of 0.18 mn tonnes, which translated into a 54 per cent quarter on quarter and 53 per cent YoY growth.