Tata Steel’s share price was tanking on Thursday morning after the company posted its results for the quarter ended September.
What Happened: Tata Steel posted a consolidated net loss of ₹6,511 crore for the September quarter, a significant contrast to the net profit of ₹1,297 crore recorded in the same period a year ago. The company faced challenges from impairment charges and declining margins in its European operations.
The steel giant’s consolidated total revenue from operations was at ₹55,681 crore, down around 7% from the ₹59,877 crore booked in the corresponding period of the previous year.
See Also: Top 10 Richest People In India In November 2023
During the July-September period, the Tata Group company disclosed an exceptional loss of ₹6,898 crore. This exceptional loss included an impairment charge of ₹2,631 crore, related to Tata Steel UK, a step-down subsidiary. Additionally, there was a charge for restructuring and other provisions of ₹3,612 crore.
EBITDA for the quarter was at ₹4,315 crore, with margins at 8%. The company’s net debt at the end of the September quarter amounted to ₹77,032 crore, and the group’s liquidity remained at ₹27,637 crore.
Reacting to the results Morgan Stanley maintained its “equal-weight” rating for the stock with a target price of ₹115.
Price Action: Tata Steel’s share price was down % to trade at ₹ at open on Thursday.
Read Next: Work From Office 10 Days Of Month, Says Infosys After Founder’s Call For 70-Hour Work Week
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.