Tata Steel hits 6-year high post Q1 results

STOCK MARKET - Tata Steel hit an over six-year high of Rs 625, up 4% on BSE in otherwise weak market after the company reported a consolidated net profit of Rs 921 crore in the April-June quarter (Q1FY18). The stock is trading at its highest level since April 27, 2011.

The company had posted a huge loss of Rs 3,183 crore in the corresponding period last year.

The strong growth in net profit during the reporting quarter has come despite Rs 617 crore exceptional hit due to provisioning related to mining related operations by its South East Asian operations.

“Strong operating performance both in the Indian operations as well as European operations has resulted in the better than expected results. The management has re-iterated that increased capacity in Indian and ongoing restructuring in the European operations has lead to consolidated sales growth of 19.3% YoY to Rs 30,973 crore,” Angel Broking said in a client note.

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