Sensex, Nifty touch record levels as rupee recovers

Sensex, Nifty touch record levels as rupee recovers

Positive global cues on easing trade protectionist measures along with an appreciation in the Indian rupee lifted the key equity indices — S&P BSE Sensex and the NSE Nifty 50 — to settle at fresh high levels on Monday.

On a intra-day basis, the BSE Sensex touched a fresh high of 38,340.69 points, while the Nifty50 climbed a peak of 11,565.30 points.

Index-wise, the wider NSE Nifty50 closed at 11,551.75 points, up 81 points or 0.71 per cent from its previous close of 11,470.75 points.

The benchmark BSE Sensex which had opened at 38,075.07 points, closed at 38,278.75 points, higher by 330.87 points or 0.87 per cent from its previous close of 37,947.88 points. It touched an intra-day low of 38,050.69 points.

In the broader markets, the S&P BSE Mid-cap ended higher by 1.05 per cent and the S&P BSE Small-cap rose by 0.14 per cent.

The BSE market breadth was tilted towards the bulls with 1,437 advances and 1,307 declines.

“Positive global stocks, optimism over a trade resolution between the USA and China and strong institutional activity at home fuelled investor sentiment and pushed the bourses to close the day with gains,” Abhijeet Dey, Senior Fund Manager for equities at BNP Paribas Mutual Fund.

The two economic giants are expected to hold lower-level trade talks this month, offering hope that they might resolve an escalating tariff war, Dey added.

Accordingly, major Asian markets closed on a positive note, barring the Nikkei and Straits indices and European indices including FTSE 100, DAX and CAC 40 traded in the green, said Deepak Jasani, Head of Retail Research at HDFC Securities.

Besides, global cues, the appreciation in Indian rupee supported the indices’ upward movement.

On Monday, the Indian rupee appreciated by 33 paise to settle at 69.83 per US dollar, from its record closing low of 70.16 per dollar on the previous trade session.

“The rupee has appreciated today as the US dollar index has witnessed profit booking,” Anand Rathi Shares and Stock Brokers’ Research Analyst Rushabh Maru told IANS.

“There is an optimism in the market that US and China would find a solution for ongoing trade conflict. So that has also supported the rupee.”

Investment-wise, provisional data with exchanges showed that foreign institutional investors sold scrip worth Rs 483.04 crore and the domestic institutional investors purchased stocks worth Rs 593.22 crore.

Sector-wise, the S&P BSE capital goods index rose 668.41 points, the metal index was up 332.36 points and the auto index rose by 244.22 points.

In contrast, the S&P BSE IT index declined by 188.84 points, consumer durables fell 127.24 points and Teck (entertainment, technology and media) index ended lower by 76.07 points from its previous close.

The major gainers on the Sensex were Larsen and Toubro, up 6.74 per cent at Rs 1,323.95; Tata Motors (DVR), up 5.74 per cent at Rs 143.80, Tata Motors, up 4.74 at Rs 269.55; ONGC up 3.34 per cent, at Rs 168.55; and Tata Steel, up 3.24 per cent at Rs 599.40 per share.

The majors losers were Infosys, down 3.22 per cent at Rs 1,385.20; Maruti Suzuki, down 0.79 per cent at Rs 9,075.90; ICICI Bank, down 0.50 per cent at Rs 338.35; Axis Bank, down 0.46 per cent at Rs 624.20; and Hindustan Unilever, down 0.30 at Rs 1,775.40 per share.

-PTI |21 August 2018 | Mumbai

Sensex rises over 100 points, Nifty nears 10,600

Sensex rises over 100 points, Nifty nears 10,600 

The BSE Sensex rose over 100 points in early trade today, continuing its winning spree for the 10th straight session, on positive global leads and sustained buying by domestic institutional investors.
The 30-share index moved higher by 110.13 points, or 0.32 per cent, to 34,505.19. The gauge had gained 1,375.99 points in the previous nine sessions.
SensexAll the sectoral indices, led by metal and healthcare stocks, were trading in the positive territory.  The broader Nifty too opened higher by 30.70 points, or 0.29 per cent, at 10,579.40.
Brokers said continuous buying by domestic institutional investors (DIIs) and retail investors following a firm trend at other Asian bourses, overnight gains on Wall Street, and encouraging economic data strengthened market sentiment.
Major early gainers were Wipro, Yes Bank, Adani Ports, ITC, Asian Paint, Tata Motors, Bharti Airtel, ONGC, Sun Pharma, Tata Steel, TCS, Maruti Suzuki and RIL rising up to 1.47 per cent.
Meanwhile, on a net basis, DIIs bought shares worth Rs 723.81 crore, while foreign funds sold shares to the tune of Rs 951.39 crore yesterday, provisional data showed.

Brokers said continuous buying by domestic institutional investors (DIIs) and retail investors following a firm trend at other Asian bourses, overnight gains on Wall Street, and encouraging economic data strengthened market sentiment. Major early gainers were Wipro, Yes Bank, Adani Ports, ITC, Asian Paint, Tata Motors, Bharti Airtel, ONGC, Sun Pharma, Tata Steel, TCS, Maruti Suzuki and RIL rising up to 1.47 per cent.

Globally, Japan’s Nikkei moved up 1.29 per cent and Hong Kong’s Hang Seng gained 0.27 per cent in early trade today. Shanghai Composite Index, however, shed 0.36 per cent. The US Dow Jones Industrial Average ended 0.87 per cent higher in yesterday.

– PTI/18 April 2018 / Mumbai

Tata Steel to invest 15 bn on Gopalpur SEZ

Tata Steel to invest Rs 15 bn on Gopalpur SEZ infrastructure

 20 Domestic & International investors shown interest to set up units in  

Tata Steel plans to invest about Rs 15 billion in phased manner for development of infrastructure at and industrial park in Odisha. Nearly 20 from India and abroad have shown interest to set up their units in the park.The and industrial park is spread over 2600 acres.

Out of that portion is 1235 acres. plans to develop 500 acres initially to accommodate various units interested to set up their shops there.

Tata SteelAmong the 20 investors who have shown interest to set up units in the park, are a Taiwanese firm for a naptha plant, a Russian company for a steel downstream unit, a US-based NRI for a wellness product facility, a domestic telecom player for setting up of a cell phone manufacturing hub and a food stuff exporter for a poultry processing unit of international standard.Provisional booking of plots for these units have already been done.

Things would take a final shape in next 6 to 7 months, said the official.Tata Steel, which is the developer and anchor tenant for the industrial park project, intends to develop 500 acres of land in the first phase with provisions of facilities like road, water, electricity, affluent treatment, solid and waste management, land scaping and office building.

Already an aerial target manufacturing facility has been set up in the park by Mumbai-based Ltd in collaboration with UK’s As anchor tenant of the industrial park, has set up a 55,000 tonne per annum ferro chrome plant at an estimated cost of Rs 5.41 billion.

-Mumbai / March 28 , 2018

Nifty breaches 10,000 mark, Sensex at new high

Nifty breaches 10,000 mark, Sensex at new high on fund inflows 

Creating history, the NSE Nifty today breached the 10,000 level for the first time while the BSE Sensex hit another record high of 32,374.30 in opening trade led by rally in metal, banking, realty and FMCG stocks.
The 50-issue Nifty breached the historic 10,000 level by gaining 44.90 points, or 0.45 per cent, to trade at all-time high of 10,011.30, surpassing its previous intra-day high of 9,982.05 touched yesterday.
Brokers said sentiment was upbeat on sustained capital inflows and widespread buying by retail investors, driven by strong earnings by some more bluechip companies.
Image result for NSE Nifty
The flagship BSE Sensex too climbed 128.43 points, or 0.39 per cent, to trade at new record high of 32,374.30, breaking its previous record high of 32,320.86 reached in yesterday’s trade. The gauge rallied 341.47 points in the previous two sessions.
Besides, expectations of a rate cut by the Reserve Bank at its meeting next month too bolstered trading sentiments as participants indulged in raising their bets, they said.
Top performers during initial trade were Hero MotoCorpt, Bharti Airtel, HDFC Bank, Tata Steel, Power Grid, ICICI Bank, Kotak Bank, NTPC, Bajaj Auto, SBI, M&M, Dr Reddy’s, Adani Ports and ITC Ltd, rising by up to 1.28 per cent.

The 50-issue Nifty breached the historic 10,000 level by gaining 44.90 points, or 0.45 per cent, to trade at all-time high of 10,011.30, surpassing its previous intra-day high of 9,982.05 touched yesterday. Brokers said sentiment was upbeat on sustained capital inflows and widespread buying by retail investors, driven by strong earnings by some more bluechip companies. The flagship BSE Sensex too climbed 128.43 points, or 0.39 per cent, to trade at new record high of 32,374.30, breaking its previous record high of 32,320.86 reached in yesterday’s trade. The gauge rallied 341.47 points in the previous two sessions. Besides, expectations of a rate cut by the Reserve Bank at its meeting next month too bolstered trading sentiments as participants indulged in raising their bets, they said.

Among other Asian markets, Hong Kong’s Hang Seng index was up 0.09 per cent while Japan’s Nikkei shed 0.13 per cent. Shanghai Composite Index down 0.32 per cent.
 -25 July 2017 | PTI | Mumbai

Tata Steel’s First Greenfield Ferro-Chrome Plant in India at Gopalpur (Berhampur) Starts Production

Tata Steel’s First Greenfield Ferro-Chrome Plant in India at Gopalpur (Berhampur, Odisha) Starts Production

The recently commissioned ferro-chrome plant of Tata Steel at Gopalpur Industrial Park (Berhampur) in Ganjam district of Odisha, has achieved a major milestone with the first ever production of ferro-chrome on February 25, 2017, with compliance to all technical parameters.

TataChromite briquettes used for making ferro-chrome have been produced by the Briquetting Plant at the ferro-chrome plant complex. The Briquetting Plant had earlier commenced production on January 23, 2017. For the plant, the steel major is sourcing chrome ore from its chromite mine at Sukinda in Jajpur district of Odisha.

Speaking on the occasion Mr D B Sundara Ramam, Executive-in-Charge, Ferro Alloys & Minerals Division of Tata Steel said, “This marks the completion of the commissioning of the ferro-chrome plant. It also goes a long way in consolidating our footprint in Odisha and the long standing partnership with the state towards industrial progress of the region.”

As part of the anchor investment in Tata Steel’s Gopalpur Industrial Park, the Rs 542 crore Ferro-chrome plant has an installed capacity of 55,000 tonne per annum (TPA). The plant was inaugurated on November 30, 2016 by the Chief Minister of Odisha, Shri Naveen Patnaik. It is a unique environment-friendly plant with state-of-the-art pollution control equipment and technology such as the ETP (Effluent Treatment Plant) and STP (Sewage Treatment Plant). It has 100% water harvesting facility that caters to most of the water needs of the plant. It has an indigenously built semi-closed hybrid furnace, which is first of its kind in India and components procured from all over the world to maintain high standards of quality and safety. Also, it is the first plant in India to use briquetting method of Chrome ore fines agglomeration.

Besides the plant at Gopalpur, Tata Steel has two other Ferro-chrome plants in Odisha- a 65,000 TPA plant at Bamnipal in Keonjhar district and the other at Athagarh in Cuttack district of 55,000 TPA capacity under the management of its subsidiary T S Alloys.

About Tata Steel

Tata Steel Group stands among the top global steel companies with an annual crude steel capacity of 28 million tonnes per annum (MnTPA) and a turnover of US $17.69 billion in FY16. It is the world’s second-most geographically-diversified steel producer, with operations in 26 countries and commercial presence in over 50 countries. Established in 1907, the Group’s vision is to be the world steel industry benchmark in “Value Creation” and “Corporate Citizenship” through the excellence of its people, approach and overall conduct. Underpinning this vision is a performance culture committed to aspiration targets, safety and social responsibility, continuous improvement, openness and transparency. Having bagged the Deming Application Prize and Deming Grand Prize for continuous improvement in 2008 and 2012 respectively, Tata Steel has now been recognised as the global ‘Industry Leader’ in ‘Steel category’ by Dow Jones Sustainability Index. Besides being one of ‘worldsteel’s’ Climate Action members, it has also been awarded the CII ITC Sustainability Prize, the ‘Best-in-class Manufacturing’ by TIME Award, the Prime Minister’s Trophy for the best performing integrated steel plant, among several others.

Statements in this press release describing the Company’s performance may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred or implied. Important factors that could make a difference to the Company’s operations include, among others, economic conditions affecting demand/ supply and price conditions in the domestic and overseas markets in which the Company operates, changes in or due to the environment, Government regulations, laws, statutes, judicial pronouncements and/ or other incidental factors.

-Microstat, 28 February, 2017 Gopalpur-On-Sea (Berhampur)

GDP surprise takes market to 6-month high, Sensex soars 241 points

GDP surprise takes market to 6-month high, Sensex soars 241 points

Robust GDP data for the December quarter allayed market fears as the Sensex on Wednesday rallied over 241 points to end at about a six-month high of 28,985 amid firm global cues.

GDP, microstatThe impact was such that even the broader NSE Nifty took back the 8,900-mark.

The Central Statistic Office on Tuesday showed that GDP expanded by 7 per cent in the third quarter, belying all fears of the note ban derailing economic activity. It also retained its first advance growth estimate for the fiscal at 7.1 per cent.

The Sensex took off on a positive note and went past the key 29,000-mark to touch a high of 29,029.17 before settling up by 241.17 points, or 0.84 per cent, at 28,984.49, a level last seen on September 8 last year when it had closed at 29,045.28.

The gauge had lost 149.65 points in the previous two sessions.

The NSE Nifty also moved up 66.20 points, or 0.75 per cent, to 8,945.80 after shuttling between 8,960.80 and 8,898.60.

A monthly PMI survey showed that India’s manufacturing sector grew for the second straight month in February.

Meanwhile, U.S. President Donald Trump, in his address to the Congress, took a more measured tone, saying he is open to immigration reforms.

Moody’s Investors Service said demonetisation will be credit positive for India as it is likely to reduce tax avoidance and corruption, which cheered market players.

“A surprise growth of 7.1 per cent in third quarter GDP data and no negative comments in Trump’s speech have given a renewed buying interest in the market. The impact of cash crunch seems over—estimated. Prima facie, the February auto sales numbers are looking better as discretionary spending is gradually picking up,” said Vinod Nair, Head of Research, Geojit Financial Services.

 Both the key indices have rallied by almost 9 per cent in the past two months, largely on the back of a growth-oriented Budget, better-than-expected earnings from bluechip companies and strong global cues.

The government pegged GDP growth at a higher-than-expected 7.1 per cent for 2016-17 despite the cash blues, with manufacturing and agriculture doing exceptionally well, which in turn made India keep the tag of the world’s fastest growing large economy.

Better Chinese factory readings led to a higher closing in Asia and and a better opening in Europe.

Stocks of automobile companies led by M&M, Hero Motocorp and Bajaj Auto were in limelight and gained up to 3.13 per cent largely on the back of encouraging sales numbers for February.

Other prominent gainers included Tata Steel, Dr. Reddy’s, ITC Ltd, Sun Pharma, HDFC Ltd, Axis Bank, Infosys, SBI, Hindustan Unilever, ICICI Bank, Power Grid and Cipla, rising by up to 3.66 per cent.

Out of the 30-share Sensex pack, 21 ended higher while 9 led by GAIL, NTPC, Tata Motors, Bharti Airtel, RIL, Coal India, Lupin and Wipro ended lower, which limited the gains.

The BSE realty index gained the most by surging 3.46 per cent, followed by metal 1.91 per cent, FMCG 1.30 per cent, bank 0.96 per cent and healthcare 0.87 per cent.

In step with the trend, the small-cap index rose 0.45 per cent and mid-cap 0.13 per cent.

Meanwhile, foreign investors bought shares worth Rs 1,146.23 crore on Tuesday, showed provisional data.

-PTI, MUMBAI, MARCH 01, 2017

Tata Steel starts UK biz sale; sells long products to Greybull

Tata Steel starts UK biz sale; sells long products to Greybull

Tata Steel today kickstarted the sale process for its cash-guzzling UK business with divestment of Long Products Europe business unit to investment firm Greybull Capital for a “nominal” amount.
The embattled steelmaker also appointed KPMG LLC as process advisors as well as Slaughter and May as the legal advisors for “thorough, but expedited sale” of the entire shareholding in its subsidiary Tata Steel UK.
Tata Steel UK today announced “signing of an agreement to sell its Long Products Europe business to family investment office, Greybull Capital.
“Sale for a nominal consideration, would be in exchange for Greybull Capital taking on the whole of the business, including assets and relevant liabilities, and securing an appropriate funding package.”
The deal would be completed once a number of outstanding conditions have been resolved, including transfer of contracts, certain government approvals and the satisfactory completion of financing arrangements, it added.
The Long Products Europe business employs 4,800 people -– 4,400 in the UK and 400 in France.
On the sales process, it said following the advice from the Tata Steel Board to evaluate all options for the portfolio review of Tata Steel UK, the Board of Tata Steel Europe at its meeting held on March 31, 2016 reviewed several options.
Keeping in view the interest of all stakeholders, the Board (Tata Steel Europe) has “decided to commence the process of divestment of its entire shareholding in its subsidiary Tata Steel UK.”
In December last year, Tata Steel said it has signed a Letter of Intent with Greybull Capital to enter into exclusive negotiations for potential sale of Long Products Europe.
Executive Chairman of the Long Products Europe business Bimlendra Jha said: “This sale is the best possible outcome for employees who have worked relentlessly to ensure the business’s survival, and helped to make it attractive to a potential buyer.”
The agreement follows negotiations between Tata Steel UK and Greybull Capital and is an important milestone towards continuing steelmaking in Scunthorpe and steel processing in other locations in the UK and France, the India giant said.
Tata Steel Europe CEO Hans Fischer said: “Under these current challenging market conditions in Europe with the soaring levels of imports from China, we are happy that Tata Steel UK and Greybull Capital have entered the final stage of completion of the sale of shareholding in Longs Steel UK.”
This transaction will offer a future for Long Products Europe business and its 4,400 employees in the UK, he added.
The sale covers several UK-based assets including the Scunthorpe steelworks, two mills in Teesside, an engineering workshop in Workington, a design consultancy in York and the associated distribution facilities, as well as a mill in northern France.
On the sale of the entire UK business, Tata Steel Europe said: “It is the intention of Tata Steel Europe to run a thorough, but expedited sale process by reaching out to a wide universe of potential investors globally.”
The formal process has commenced “today” with despatch of the Summary Information Memorandum to potential investors, it added.
Tata Steel and its advisers are committed to working together and conducting the process in a transparent and time bound manner, the firm said.
Last month, Tata Steel put its entire UK business on the block, a development that has put thousands of jobs at risk amid a deepening crisis in Britain’s once-storied sector that the Indian conglomerate had entered nearly a decade ago with a USD 14-billion takeover with much fanfare.
-11 April 2016 | PTI | London

Tata Motors only Indian firm on top-50 global R&D

Tata Motors only Indian firm on top-50 global R&D

Tata Motors has entered the top-50 league of the world’s biggest companies in terms of their R&D investments, topped by German automaker Volskwagen.

On the annual Industrial R&D Investment Scoreboard for 2015, prepared by European Commission, Volkswagen is followed by Samsung, Microsoft, Intel and Novartis in the top-five.

Tata Motors has moved up from 104th position last year to 49th now and has also shown the largest increase in R&D (Research and Development) investments on the list. However, most of this R&D is at its UK subsidiary Jaguar Land Rover.

In the expanded list of the world’s 2,500 top R&D firms, there are a total of 26 Indian companies, as against 829 from the US, 360 from Japan, 301 from China, 114 from Taiwan, 80 from Switzerland and 27 each from Canada and Israel.

There are 608 companies from the EU countries, including 136 from Germany, 135 from the UK, 86 from France, 42 from Sweden and 32 from Italy. India is overall placed at 15th position in terms of the number of companies on the list.

Among other Indian companies, Dr Reddy’s Laboratories is ranked 404th, M&M is at 451st, Reliance Industries at 540th, Lupin at 624th, Sun Pharma at 669th, Cipla at 831st and Infosys at 884th.

Other Indian firms on the list include ONGC, Tata Steel, Wockhardt, Cadila Healthcare, Bajaj Auto, Hindalco, BHEL, Piramal Enterprises, Wipro, Helios and Matheson, HCC, Ashok Leyland, Apollo Tyres, TCS, Suzlon Energy, TVS Motor, Force India, HCL Tech and Glenmark.

While the top-five companies globally have retained their respective positions, Google has moved up to sixth place (from 9th), while Pfizer has moved to 10th (from 15th). Roche, Johnson and Johnson and Toyota are ranked 7th, 8th and 9th, respectively.

-PTI | Dec 20, 2015

Tata Steel starts distributing 350 cr. to displaced families in Gopalpur (Berhampur)

Tata Steel starts distributing 350 cr. to displaced families in Gopalpur (Berhampur)

Following government approval, disbursement process has started for Rs.350 crore additional compensation package for families displaced or affected by the land acquisition for project of Tata Steel in Ganjam district of Odisha.

“Every effort is being made for early disposal of the compensation cases while maintaining transparency in every case. A lot will depend upon the documents that are being filed by the respective awardees and the clarity they provide during scrutiny to the officers. Team work will definitely be key to success of this initiative,” said Arun Misra, Vice-President (Project Gopalpur) & MD, Tata Steel Special Economic Zone Limited.

The company has formed special teams to accelerate the process of disbursement of the additional Revised & Rehabilitation and Resettlement (R&R) package. Notices regarding additional R&R package have been given to 1,398 displaced families.

According to company sources, 413 persons have already filed their responses to this notice. It has been decided that revised compensation would be disbursed to 200 to 300 families every month. Till now, 27 nominees from displaced families have received Rs.7 lakh each towards cash in lieu of job summing up to Rs.1.89 crore. Monthly maintenance allowance of Rs.5,000 per month for the 1,645 families displaced or affected by Tata Steel project here has been started from November 1.

The company claimed that till now it has provided technical training to 700 youths from displaced families.

But an organisation of displaced and affected families named ‘Tata Visthapita Manch’ is not satisfied with this revised compensation package. They are demanding Rs.50 lakh for each acre of land acquired by the company and permanent employment for one person from each displaced family.

Recruitment for 400 persons at the commissioning stage of this ferrochrome plant will be made as per guidelines discussed in Periphery Development Advisory Committee (RPDAC) held on September 30 under chairmanship of Revenue Divisional Commissioner (RDC), southern division, which was also attended by project displaced and affected families, said Tata Steel authorities.

Tata Steel Q2 profit up 22% on other income, Europe hurts

 Tata Steel Q2 profit up 22% on other income, Europe hurts

Other income stood at Rs 2,938.2 crore for the quarter, significantly higher compared to Rs 321.5 crore in year-ago period due to sale of shares in Tata Motors.

Tata Steel  ‘s consolidated profit grew by 21.9 percent year-on-year to Rs 1,528.7 crore in July-September quarter, driven majorly by other income but exceptional loss limited bottomline growth. Domestic operations were better than analysts’ expectations but Europe operations disappointed due to sharp deterioration in market conditions (especially in UK) which reported EBITDA loss during the quarter. Consolidated revenue declined 18 percent to Rs 29,304.7 crore during the quarter compared to Rs 35,777.1 crore during same period. “Underlying operating performance of Tata Steel Group in Q2FY16 has been impacted by weak economic environment, relative currency movements and a surge in imports in key geographies such as the UK, India and Europe,” Koushik Chatterjee, Group Executive Director (Finance and Corporate), says in its statement.

Consolidated numbers barring profit missed analysts’ expectations. Profit was estimated at Rs 851 crore on revenue of Rs 29,600 crore and operating profit was expected at Rs 2,465 crore (down 32.3 percent year-on-year) with margin contraction of 190 basis points for the quarter. Consolidated operating profit (earnings before interest, tax, depreciation and amortisation) plunged 49.8 percent year-on-year to Rs 1,830 crore and margin contracted by 400 basis points to 6.2 percent in quarter ended September 2015. Other income stood at Rs 2,938.2 crore for the quarter (significantly higher compared to Rs 321.5 crore in year-ago period), which included gain of Rs 2,808.29 crore on sale of quoted investments.

In September, Tata Steel sold 3,78,78,787 ordinary Shares of Tata Motors to Tata Sons (through off-market transaction) at a price of Rs 330 per share, aggregating to Rs 1249.99 crore. The company has reported an exceptional loss of Rs 563.7 crore during the quarter against exceptional gain of Rs 1,145 crore in year-ago period. Exceptional item included provisions & diminution of assets and credit on account of solution of pension row in Europe. “During the first half of the current fiscal, Tata Steel has raised internal equity of around Rs 4,200 crore by continuing to monetise non-core assets. The company also successfully restructured the British Steel Pension Scheme and completed Triennial valuation of the scheme,” Chatterjee says.

Domestic

Indian operations reported strog growth in production and deliveries during the quarter despite subdued manufacturing activity in country, downturn in global commodity prices and strong imports from China & other FTA countries like Japan & Korea. Deliveries increased by 9 percent to 2.33 million tonnes on the back of strong sales to auto sector and a higher proportion of value added products, TV Narendran, Managing Director of Tata Steel India and South East Asia says. On standalone basis (domestic operations), profit during the quarter declined 2 percent to Rs 2,523 crore and revenue fell 11.6 percent to Rs 9,531 crore compared to corresponding quarter of last fiscal.

Operating profit was down 39.8 percent to Rs 1,862 crore and margin contracted by 920 basis points to 19.5 percent in same period. Standalone numbers were ahead of estimates. Profit was estimated at Rs 2,310 crore on revenue of Rs 8,780 crore and operating profit was expected at Rs 1,655 crore with margin at 18.8 percent for the quarter. Other expenses on standalone basis declined 12.1 percent to Rs 2,272 crore and finance cost was down 32.2 percent to Rs 331.3 crore compared to year-ago period.

Europe

Tata Steel Europe has posted a loss of Rs 238 crore at EBITDA level (against EBITDA gain of Rs 929 crore year-on-year) as sharp deterioration in market conditions affected performance in the UK. Turnover during the quarter was at Rs 16,948 crore, down 16.1 percent compared to year-ago period. The company said increasing imports along with restructuring initiatives led to decline in Q2 deliveries to 3.27 million tonnes, down 2.7 percent year-on-year. “Operating result has turned negative this year, reflecting huge challenges the global steel industry is facing. In the UK these issues have been compounded by unhelpful exchange rates and regulatory costs that are destroying competitiveness,” Dr Karl-Ulrich Kohler, MD & CEO of Tata Steel Europe says. Gaurang Shah, Geojit BNP Paribas Financial Services expects more pressure for the company in coming quarters.

“Operations from Europe are definitely going to be a huge strain on the finances going forward,” he says. Revenue from its South East Asian business declined 46.1 percent year-on-year to Rs 2,001 crore during the quarter, impacted by rising imports from China. Reported EBITDA by this region stood at Rs 70 crore for the quarter. On the positive side, the company has reduced its gross debt by Rs 2,903 crore during the quarter.

It said gross debt has reduced from Rs 82,380 crore in end June 2015 to Rs 80,903 crore after taking into account foreign currency translation impact of Rs 1,213 crore. Consolidated finance cost dropped 15 percent to Rs 1,048.7 crore from Rs 1,232.8 crore year-on-year. The stock closed at Rs 225.60, down Rs 10.20, or 4.33 percent ahead of earnings that announced after market hours.

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