Saturday, November 10, 2012

Tata Steel posts Rs 364 cr loss in Q2, stock tanks


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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