The steelmaker reported a consolidated net loss of Rs 4,648.13 crore in the June quarter against a net profit of Rs 714 crore in the year-ago period. Revenue from operations fell to Rs 24,288.51 crore against Rs 33,769 crore registered in the year-ago period.
Following the result update, shares of Tata Steel touched an intraday high of Rs 430.8, rising 4.25% compared to its earlier closing of Rs 413.25 on BSE. The stock also touched an intraday low of Rs 408.80, also its opening value.
Market capitalisation of the large-cap firm stood at Rs 46,783 crore as of today’s closing session.
Company’s Adjusted EBITDA stood at Rs 1,038 crore in Q1 FY21, as against Rs 5,530 crore YoY and Rs 4,869 crore QoQ. Tata Steel added that there was a reduction in net debt of Rs 1,677 crore in India, including a reduction of Rs 577 crore and Rs 291 crore, respectively, at Tata Steel BSL and Tata Steel Long Products.
The company in its regulatory filing said its operating level has recovered to 90% by June 30 and has since then increased further to 95%.
“India average steel realizations were lower due to the COVID impact during the quarter and about Rs 2,000 crore of costs were under absorbed due to the lower volumes and have been charged to the profit and loss account,” the company said.
Commenting on results of Tata Steel, Jyoti Roy, DVP-Equity Strategist, Angel Broking said,” Though the company reported a greater than expected loss for the quarter it seems that the worst is over for the company as Global steel demand is expected to improve gradually from here on as economic activity recovers with relaxation in mobility restrictions and policy stimulus.”
Shares of Tata Steel closed 1.26% higher at Rs 418.45 today.