Tata Steel share price slips over 5% post Q3 earnings
BusinessToday.In February 10, 2020
Tata Steel share price slipped over 5% today after the company posted a consolidated loss of Rs 1,229 crore in Q3 due to headwinds in European business. The steel major posted a consolidated profit of Rs 1,753 crore in the year-ago period.
Following the result update, Tata Steel stock opened with a loss of 2.26% and later touched an intraday low of Rs 445.55, falling 5.39% against its previous close of Rs 470.95 on BSE. Share price of Tata Steel stock has fallen 6.52% in the last 3 days of trade. Tata Steel has lost 3% in one week, 0.85% in one month and 20 % in a year.
Tata Steel stock price trades higher than 100 and 200-day moving averages but lower than 5, 20 and 50-day moving averages. The fall in stock was also in line with the broader market index Sensex that dropped over 300 points or 0.77% on Monday tracking losses in global equities.
Volume-wise, 4.6 lakh and 132.8 lakh shares changed hands on BSE and NSE counters today. Market depth data of Tata Steel stock suggests 61% of sellers offering against 39% buyers bidding on the stock. Market capitalisation of the large-cap stock currently stands at Rs 50,540 crore.
Tata Steel's consolidated revenues declined 8.58% to Rs 35,520 crore during Q3 FY20, as compared to Rs 38,854 crore in the year-ago period. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) shrunk more than 45% on annual basis in the quarter under review to Rs 3,659 crore, as opposed to Rs 6,726 crore in the year-ago period.
Commenting on the financial results for December quarter, Tata Steel CEO TV Narendran said, "In India, our business model helped us counter the slowdown as we successfully penetrated new markets and expanded our customer universe. We were also able to maintain our sales to the auto segment despite the sluggishness faced by the auto industry. Both our acquisitions, Tata Steel BSL and Tata Steel Long Products, continue to deliver operational improvements and achieve milestones in the market place."
"However, our European operations made a loss as it felt the brunt of the overall slowdown and the consequent shrinking of spreads. This adversely affected our consolidated performance," he added.