Tata Steel has disappointed the street by reporting lower
than expected numbers sending its shares down by 4 percent.
The company has posted a consolidated (including Tata Steel
Europe (earlier Corus)) a net loss of Rs 364 crore for the quarter as against
profit of Rs 212.4 crore, YoY on poor demand and prices in its main European
market offset a healthy performance in domestic market..
Consolidated net sales rose nearly 1% year-on-year to Rs
33,867 crore, YoY.
The steel producer's operational performance too was
unsatisfactory. Its. consolidated earnings before interest, tax, depreciation
and amortization (EBITDA) dropped 16.9 percent to Rs 2,045 crore, YoY.
The company had to bear higher cost on raw materials which
went up to Rs 2537.16 crore as against Rs 1889.04 crore, YoY on higher coal
prices. Steel prices over the second quarter fell by around 6% because of
falling international rates and sluggish demand growth.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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