Shares of Tata Steel recovered from the previous day’s losses, gaining nearly 4% on Tuesday as the company posted better-than-expected quarterly results for the first quarter of the 2023-24 fiscal year. 

The stock was trading at Rs 119.20 at 03:05 pm, 3.20% higher than the previous closing price. The scrip opened lower at Rs 115 but later rose as much as 3.8% to reach an intraday high of Rs 119.90. 

The steel maker posted a 93% decline in consolidated net profit in Q1FY24 to Rs 524.85 crore from Rs 7,714 crore in the June quarter last year. The profit in the previous quarter stood at Rs 1,566 crore. The drastic fall was primarily due to the weak performance of its Europe operations.

The company’s consolidated revenue from operations fell 6.21% year-on-year to Rs 59,490 crore in the June quarter. The same in the corresponding period last year stood at Rs 63,430 crore. 

A non-cash deferred tax charge from the British Steel Pension Scheme’s buy-in transaction also impacted the profit for the current quarter. However, according to the firm, the British Steel Pension Scheme’s insurance buy-in was completed, effectively lowering risks for Tata Steel UK.

After considering changes linked to changes in foreign exchange movements on intercompany debt, receivables, and the British Steel Pension Scheme (BSPS), the company said its adjusted EBITDA was Rs 6,238 crore.

T V Narendran has been reappointed as the company’s Chief Executive Officer & Managing Director for five years beginning on September 19, 2023, according to a statement released by Tata Steel on Monday.