Shares of Tata Steel today rose more than 5 per cent in morning trade after the company reported a five-fold jump in its third quarter profit. Tata Steel on February 9 had reported a five-fold rise in consolidated net profit to Rs 1,135.92 crore for the third quarter ended December 31. It had posted a consolidated net profit of Rs 231.90 crore in the same quarter of last fiscal. Following the strong results, the shares of the company opened on a bullish note at Rs 718, up 5.02 per cent over the previous close. On a similar note, the stock opened at Rs 716 on the NSE, registering a jump of 4.47 per cent over its previous closing price.
The stock was the second highest gainer on the benchmark index Sensex in morning trade. The consolidated income during October-December quarter increased to Rs 33,672.48 crore, from Rs 29,154.75 crore in the year-ago period. Over the last nine months, Tata Steel delivered strong consolidated operational performance across geographies and the firm expects this momentum to continue as markets are expected to remain favourable, its CEO and MD T V Narendran said. “Globally, steel prices have been buoyant with improved trade position in China along with cost push from raw materials…In India, we have witnessed strong volume growth across the verticals as well as an increase in realisations,” Narendran added. The company’s Executive Director and CFO Koushik Chatterjee said that Tata Steel group revenues witnessed robust growth driven by improved volumes in India and stronger realisations across geographies, on the back of improvement in commodity prices.