Tata Steel, is one of the flagship company of the Tata group. It is second most geographically diversified steel producer in the world. It also shares pride of being a Fortune 500 Company. Tata Steel Q3 Earnings declared today are the testimony of it’s achievements.
Though a lot of concerns were raised about rising steel (including TMT, bar, pig iron) prices (have shot upto more than 8000 in past one month) and the Central government was criticized for failing to control the rise in price, but the budget 2018 proved it to be otherwise.
The government impetus towards the infrastructure development and allocation of 5.97 lakh crore indicates that the steel industry in on the government’s radar.
The MD of Tata Steel went on saying that the increased focus on infrastructure development will lead to increased steel demand and affordable housing (a dream that PM has wished for). Even the MSME (Micro Small Medium Enterprises) are happy with this move. Truly, the finance minister offered a bouquet of benefits to the steel industry in Budget 2018. And again there is a moment to rejoice.
Tata Steel Q3 Earnings Declared
Tata Steel has registered 5 fold increase in its consolidated profit at Rs 1,136 crore. The profit for the quarter ended 2016 was pegged at Rs 232 crore.
The consolidated revenue during the quarter grew up by 20.8 percent to Rs 33,447 crore as compared to Rs 27,684 crore a year ago.
In India, the business recorded a growth of Rs 15,596 crore and overseas in Europe the business grew by 20.7 percent to Rs 14,693 crore. European government is backing the steel companies in Europe and yesterday itself they imposed an anti dumping duty of of 17.2%-27.9% for corrosion-resistant coated steel imports from China.
The earnings before tax recorded a growth of 5.67 percent year on tear at Rs 5697 crore and a margin expansion of 390 points at 17 percent.
The earnings before interest and tax recorded a growth of 37 percent at Rs 4,647 crore and in Europe the business registered a fall of 10.6% at Ra 632.2 crore in the same quarter.
Our Kalinganagar plant has upheld the Tata trust in the market for the Oil and Gas industry by developing competence for supplying steel where strength and toughness are two major prerequisites. These advantages have helped us to stay a step ahead of the competition. #InsideTSK pic.twitter.com/ulVEwyD3vA
— Tata Steel (@TataSteelLtd) February 9, 2018
Tata Steel Share Price Impact
The stock price closed up 1.83 percent at Rs 683.65 ahead of earnings that came after market hours today. With strong Q3 results, we expect the Tata Steel share price to run up on Monday. Both Indian and European Markets have strong government backing for thrust in business and earnings therefore Tata Steel looks like a safe bet for investors in medium to long term.