Shares of Tata Steel fell 5% to Rs 112 on the BSE in intraday trade on Tuesday after the steel giant reported a consolidated net loss was Rs 2,502 crore, considering higher charges.

The stock was quoted 3% lower at Rs 114.60 at 9:21 am, while the S&P BSE Sensex rose 0.13%. Tata Steel has outperformed the market over the past three months, rising 10% against a 1% drop for the S&P BSE Sensex.

The disappointing performance in the quarter was due to a sharp decline in European realizations and non-cash deferred tax charges from the British Steel pension scheme. “Profitability has been impacted by European realizations and sharp declines in spreads,” Tata Steel said.

Tata group of companies posted a net profit of Rs 9,598 crore for the same period last year (Q3FY22). Consolidated operating income was at Rs 56,757 crore, down 6.2% from Rs 60,525 crore in the same period the previous year. EBITDA fell 74% year-on-year and 34% quarter-on-quarter to Rs 4,154 crore.

In the last quarter (Q2FY23), consolidated revenue stood at Rs 59,512 crore, and net profit stood at Rs 1,514 crore.

Commenting on the results, Tata Steel CEO and MD T V Narendran said September deliveries in Europe for FY23 were lower due to slower demand. “Recession fears weighed on steel prices, coupled with higher energy costs impacting our results,” he said.