Tata Steel slumps nearly 5% on disappointing earnings

Stocks of Tata Steel went down by nearly 5% on Monday after the company reported a 69% dip in consolidated net profit for the October-December quarter.

Tata Steel's scrip dipped 4.56% to Rs 352.45 on the BSE.

On the NSE, it fell by 4.61% to Rs 351.65.

The stock was the biggest loser among the 50-Nifty scrips.

Notwithstanding an improved show by its European operations, Tata Steel had on Friday reported a 69% dip in consolidated net profit for the October-December quarter at Rs 157 crore impacted by subdued performance of its Indian unit, which has always been its cash-cow.

The company had clocked Rs 503 crore net profit after taxes, minority interest and share of profit of the associates during the October-December quarter of the last fiscal.

Profit after tax from Indian operations, which comprise a 9.7 million tonnes per annum steel plant at Jamshedpur, fell to Rs 881 crore compared to Rs 1,519 crore in the same quarter last fiscal. It sold 2.13 MT steel during the quarter, up from 2.07 MT a year earlier.

Turnover from India also declined to Rs 9,897 crore from Rs 10,143 crore.