The shares of one of the leading Tata stocks, specializing in producing hot-rolled, cold-rolled, and galvanized steel and make rebars and other branded products, jumped 3.3. Percent upon beating the volume estimates
Price action
With a market capitalization of Rs. 1,57,791 crores on Tuesday, the shares of Tata Steel Limited jumped 3.3 percent making a high of Rs. 130.49 per share compared to its previous closing price of Rs. 126.37 per share.
What Happened
Tata Steel Limited specializing in producing hot-rolled, cold-rolled, and galvanized steel has announced its Q3FY25 results
Its Total income fell by 3 percent YoY from Rs. 55,539 Crores in Q3FY24 to Rs. 53,869 Crores in Q3FY25 and it fell by 1.16 percent QoQ from Rs. 54,503 Crores in Q2FY25 to Rs. 53,869 Crores in Q3FY25.
Its Net Profit declined 43 percent YoY from Rs. 522.14 Crores in Q3FY24 to Rs. 295.49 Crores in Q3FY25 and it fell by 61 percent QoQ from Rs. 758.84 Crores in Q2FY25 to Rs. 295.49 Crores in Q3FY25.
The decline in sales and profit despite higher volumes during the quarter was due to pressure from cheap imports from China and other territories, such as Vietnam and South Korea, which caused realizations to decline across all of its markets—India, the United Kingdom, and the Netherlands.
Furthermore, despite the decline in revenue and sales the company’s volumes improved by 8 percent YoY in the India operations, and also higher by 4 percent over the July-September quarter.
Major Expansion project
Kalinganagar expansion to enhance product mix and cost savings they commissioned a 5 MTPA blast furnace, currently producing about 7,500 tons a day, and new facilities, including a 6 MTPA pellet plant, aimed to improve cost profile and production capabilities.
Industry Outlook
They expect Rs 143 trillion Investments by India towards its infrastructure by 2030, USD 4,000 Forecast per capita income of India by 2030, and India’s targeted ~300 MTPA crude steel capacity by FY30 – 31.
Written by Sridhar J
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