Tata Steel Q1 net profit jumps 75 per cent to Rs 960 crore
The company's revenue from operations during the first quarter declined 8 per cent year-on-year to Rs 54,771 crore compared to Rs 59,490 crore in the same period last year.
Shares of Tata Steel surged nearly 7 per cent on Tuesday after the company confirmed that is has started talks with Sweden-based SSAB to sell its Netherland business, including Ijmuiden steelworks.
It surged 7.6 per cent to touch an intra-day high of Rs 529.50.
Around 11.35 a.m., it was trading at 526.25, higher by 34.15 points or 6.94 per cent from its previous close.
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On Friday, the company said that it has also started discussions with the supervisory board and board of management of Tata Steel Netherlands and the process will move to the next stage including due diligence and stakeholders’ consultations.
The steel major has also initiated the process to separate Tata Steel Netherlands and Tata Steel UK and will pursue separate strategic paths for the Netherlands and the UK business in the future.
“The company has initiated discussions with SSAB Sweden based on interest received for the potential acquisition of Tata Steel’s Netherland business including Ijmuiden steelworks,” it said.
It also said that it continues its dialogue with the UK government on potential measures to safeguard the long-term future of Tata Steel UK and added that it is reviewing all options to make the business self-sustaining without the need for any funding support from Tata Steel India in the future.
On Friday, it reported a nearly 60 per cent fall in its consolidated net profit for the July-September period at Rs 1,635 crore. During the same quarter last fiscal, the company had reported a net profit of Rs 4,043 crore.
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