Tata Steel share price gains over 1% after Q1 results meets estimates; here’s what brokerages have to say
Tata Steel share price recovered from early losses on Tuesday to trade over a percent higher after the company reported Q1 result in-line with analysts’ estimates. Tata Steel shares gained as much as 1.68% to ₹117.20 apiece on the BSE. Tata Steel reported a 92% year-on-year drop in its consolidated net profit for the fiscal first quarter ended June 2023 at ₹525 crore, primarily due to weak performance of its Europe operations.
The company had reported a profit of ₹7,714 crore in the year-ago period. Sequentially, consolidated net profit declined 63% from ₹1,566 crore in Q4FY23. The company's consolidated total revenue from operations in Q1FY24 fell 6.21% YoY to ₹59,489.66 crore from ₹63,430.07 crore in Q1FY23, impacted due to lower volumes, which were partially offset by higher realisations across geographies.
Read here: Tata Steel Q1 Results: Net profit down 92% on year to ₹633.95 crore “During the quarter, global economic recovery continued to face headwinds affecting commodity prices including steel. In India, domestic steel demand continued to grow and was up around 10% on YoY basis but steel spot prices moderated in line with global cues," said T V Narendran, Chief Executive Officer & Managing Director, Tata Steel. As per the company's BSE filing, earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q1FY24 stood at ₹6,122 crore and EBITDA margin came at 10%.
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