Tata Steel's Shares Plummet by 4% Following Significant Profit Drop

Tata Steel shares fell by 4% after the company reported a substantial 64.59% decline in net profit for Q1 2023-24. The profit decrease, from Rs 1,566.24 crore to Rs 554.56 crore, was attributed to lower realisations and exceptional items. The total income also fell 6%, largely offset by higher volumes in India.

Shares of Tata Steel on Thursday declined 4 per cent in the early trade after the homegrown steelmaker reported a 64.59 per cent decline in its net profit for the January-March quarter of 2023-24, on lower realisations and certain exceptional items.

In the morning trade, the stock of the company fell 3.93 per cent to trade at Rs 167.40 apiece on the National Stock Exchange (NSE).

On the BSE, it went lower 3.82 per cent to Rs 167.55 per piece.

Tata Steel on Wednesday reported a 64.59 per cent decline in its consolidated net profit to Rs 554.56 crore for the January-March quarter of 2023-24 on lower realisations and certain exceptional items.

The steel major had posted a profit of Rs 1,566.24 crore in the year-ago period.

Total income of the company declined to Rs 58,863.22 crore from Rs 63,131.08 crore in the January-March period of FY23.

Its revenues decreased 6 per cent due to lower realisations but were partly offset by higher volumes in India.

The company said exceptional items were primarily related to impairment of heavy-end assets and restructuring costs relating to the UK business.