Stocks

Tata Steel hits over 2-1/2-year low as Q1 profit plunges

Reuters August 8 | Updated on August 08, 2019 Published on August 08, 2019

Tata Steel posted a 64% slump in quarterly net profit at Rs 693 crore, missing estimates of Rs 1,542 crore - Arunangsu Roy Chowdhury

Shares of Tata Steel Ltd fell as much as 4.1 per cent to Rs 366.25, their lowest since January 4, 2017.

The steel maker posted a 64 per cent slump in quarterly net profit at Rs 693 crore ($97.97 million), missing estimates of Rs 1,542 crore. Expenses rose 6 per cent to Rs 34,459 crore.

During the quarter, steel prices across geographies declined, with weakening economic activities and uncertainty around the ongoing US-China trade conflict, the company said in a statement.

In India, steel prices declined as subdued economic activity, seasonal slowdown and liquidity issues weighed on domestic consumption, Tata Steel said.

Global steel demand is expected to remain weak due to the broader economic weakness and trade barriers among the global economies.

Up to last close, the Tata Steel is down 27 per cent this year, while peer Steel Authority Of India is down 31 per cent in the period ($1 = 70.7350 rupees).

Published on August 08, 2019
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