Tata Steel share price climbed almost 5% on Tuesday after India’s largest private steel producer reported March quarterly earnings, that were better than industry estimates.
For the financial year 2019-20, the steelmakers’ consolidated net profit came in at Rs 2,719.58 crore, registering a 75% year-on-year decline against Rs 10,283.45 crore in the financial year 2018-19.
Following the result update, Tata Steel share price touched an intraday high of Rs 336.95, rising 4.89% against the previous closing price of Rs 321.25.
On Monday, shares of Tata Steel ended 0.82% lower at Rs 321.25 on BSE, after hitting an intraday high and low of Rs 325.65 and Rs 312.25, respectively.
Tata Steel shares trade higher than 5, 20, 50 and 100-day moving averages but lower than 200-day moving averages. Tata Steel stock has risen 1.19% in one week and 13% in one month.
For January-March quarter of FY20, Tata Steel reported a consolidated net loss of Rs 1,095.68 crore against a net profit of Rs 2,430.92 crore in the corresponding quarter last year, dented by impairment of Rs 3,141.43 crore on non-current assets.
Consolidated revenue of company fell 20.40% to Rs 33,769.95 crore in Q4 FY20 from Rs 42,423.86 crore in Q4 FY19.
Tata Steel said in a filing to the Bombay Stock Exchange that its’s steelmaking facilities across India scaled down operations from the end week of March 2020. The company’s overseas operations in Europe, South East Asia and Canada have also been scaled down and are being operated as per the local guidelines, wherever permitted, it said.
With the continuance of lockdowns during the first quarter of the financial year 2021, the Group’s operations remained adversely impacted, it added later.
Tata Steel’s board has recommended a dividend of Rs 10 per ordinary share of Rs 10 each (100 per cent) and Rs 2.504 per partly paid ordinary share of Rs 10 each (paid-up Rs 2.504 per share) for shareholders.