Tata Steel has reported a 13% drop in net profits for the quarter ended 31st December, 2000. However, on excluding the impact of extra ordinary items on profits, the company has reported a sharp rise in profitability. This is in line with the company’s performance in earlier quarters.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy)
Diluted Earnings per share#*
The interest and depreciation has however continued to register a growth. This is largely due to the commissioning and subsequent ramping up of operations at its new cold rolling mill. This facility is anticipated to benefit the company in terms of better realisations in coming quarters.
Tisco has benefited largely from a rise in operating margins. This has been made possible by firm prices and declining costs. However, on a quarter on quarter basis, the company has seen its OPM fall by 0.5%. This could be due to the recent sluggishness in some key international markets. In the coming quarters the company could be faced with more pressure as it faces an increasingly hostile export market (the US has recently imposed anti dumping duties) and as competition in the domestic market intensifies.
The stock is presetly trading at Rs 132, implying a P/e muliple of 9.5x.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India. Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407