Business Today
Loading...

Tata Steel share hits 52-week low on disappointing Q1 earnings

Weighed down by weak Q1, Tata Steel share price fell as much as 5.51 per cent to touch 52-week low of Rs 360.75 apiece on the BSE after making a bearish start at Rs 377.05

twitter-logo BusinessToday.In   New Delhi     Last Updated: August 8, 2019  | 14:51 IST
Tata Steel share hits 52-week low on disappointing Q1 earnings
Tata Steel on Wednesday reported 64.5 per cent year-on-year (YoY) decline in its consolidated net profit to Rs 683.13 crore for the first quarter ended June 30, 2019

Shares of Tata Steel declined over 5 per cent intra day, hitting 52-week low, on the Bombay Stock Exchange (BSE) on Wednesday after the steel maker reported disappointing earnings for June quarter. The stock has declined nearly 10 per cent in the past two trading sessions.

Tata Steel on Wednesday reported 64.5 per cent year-on-year (YoY) decline in its consolidated net profit to Rs 683.13 crore for the first quarter ended June 30, 2019, dented by a decline in steel prices and rise in expenses. Consolidated revenue increased marginally by 1.27 per cent to Rs 35,947.11 crore in April-June quarter of the current fiscal compared with Rs 35,846.92 crore in the year-ago period.

Weighed down by weak Q1, Tata Steel share price fell as much as 5.51 per cent to touch 52-week low of Rs 360.75 apiece on the BSE after making a bearish start at Rs 377.05. At 2: 36 pm, Tata Steel share was trading at Rs 363.70, down 4.74 per cent. The stock breached its three-year low of Rs 365 touched on December 27, 2016, in intra-day trade.

The stock witnessed a huge surge in volume as 9.87 lakh shares changed hands over the counter as compared to their two-week average volume of 6.24 lakh shares.  

On the National Stock Exchange (NSE), Tata Steel share traded at Rs 363.25 apiece, down 4.88 per cent as compared to previous closing price of Rs 381.90. The stock opened lower at Rs 379 and touched a 52-week low of Rs 360.60 during the day's trade.

Also Read: Tata Steel Q1 profit tumbles 64.5% to Rs 683 crore on weak demand, subdued revenue growth

Brokerage firm CLSA cut the target price to Rs 320, from Rs 395 earlier, citing that "valuations are too high despite stock fall".

Motilal Oswal Financial Services has maintained 'Neutral' rating on Tata Steel stock with a target price of Rs 422. The agency said that margins will be under pressure over the near term due to slow demand in India and EU.

Tata Steel's India business reported a 13 per cent YoY rise in revenue from operations to Rs 21,129 crore, driven by higher volumes. Tata Steel Europe revenue from operations decreased to Rs 14,495 crore in Q1FY20 in line with lower deliveries.

Also Read: HCL Tech stock rises over 5% despite decline in Q1 profit

"During the quarter, steel prices across geographies declined with weakening economic activities and uncertainty around the ongoing US-China trade conflict. This coincided with a sharp rise in iron ore prices due to supply disruptions and elevated coking coal costs. As a result, steel spreads dropped by around USD 80-100/ton in key markets," the company had said in its press release.

Edited by Chitranjan Kumar

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close