Shares of Tata Steel on Monday rose more than 5 % in morning trade after the company reported a five-fold jump in its third quarter profit.
Tata Steel on February 9 had reported a five-fold rise in consolidated net profit to ₹1,135.92 crore for the third quarter that ended December 31. It had posted a consolidated net profit of ₹ 231.90 crore in the same quarter of last fiscal.
Following the strong results, the shares of the company opened on a bullish note at ₹ 718, up 5.02 % over the previous close.
On a similar note, the stock opened at ₹716 on the NSE, registering a jump of 4.47 % over its previous closing price.
The stock was the second highest gainer on the benchmark index Sensex in morning trade.
The consolidated income during October-December quarter increased to ₹ 33,672.48 crore, from ₹ 29,154.75 crore in the year-ago period.
Over the last nine months, Tata Steel has delivered strong consolidated operational performance across geographies and the firm expects this momentum to continue as markets are expected to remain favourable, its CEO and MD T V Narendran said.
“Globally, steel prices have been buoyant with improved trade position in China along with cost push from raw materials…In India, we have witnessed strong volume growth across the verticals as well as an increase in realisations,” Narendran added.
The company’s Executive Director and CFO Koushik Chatterjee said that theTata Steel group revenues witnessed robust growth driven by improved volumes in India and stronger realisations across geographies, on the back of improvement in commodity prices.