Shares of Tata Steel Ltd on Monday slipped 5.4%, the highest fall in two months, as the company reported weak numbers for the December quarter and as several brokerages slashed their target price for the stock. At 1102 am, the stock was trading at Rs 446.45 apiece on the BSE, down 5.2% from its previous close. The company reported a net loss of Rs 1228.53 crore in the third quarter of this fiscal against a profit of Rs 1753 crore a year ago.
Consolidated revenue fell 8.9% year-on-year to Rs 35,520 crore in October-December. Earnings before interest, tax, depreciation and amortization (Ebitda) nearly halved to Rs 3,659 crore in Q3, from Rs 6,726 crore in the previous year, while Ebitda per tonne fell to Rs 5,003 from Rs 10,404 in Q3 FY19.
Tata Steel’s net profit from India operations was Rs 1,194 crore, down 47% year-on-year. Revenue fell 4.6% to Rs 21,299 crore even though steel sales rose 25% in the quarter to 4.85mt.
For Europe operations, the company reported its worst-ever quarterly performance with an EBITDA loss of Rs 960 crore. While analysts expect EBITDA to recover ina January quarter given better steel spreads, the purchase of carbon credits would put a lid on profits.
Read EquityPandit’s Nifty Outlook for the Week