|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||1,163.25 - 1,246.85|
|52-week range||262.45 - 1,246.85|
|Beta (5Y monthly)||1.43|
|PE ratio (TTM)||18.49|
|Forward dividend & yield||25.00 (2.03%)|
|Ex-dividend date||17 Jun 2021|
|1y target est||N/A|
(Bloomberg) -- Tata Steel Ltd. swung to a quarterly profit as an economic recovery after a nationwide lockdown drove a rebound in steel consumption and prices rallied globally.Group net profit jumped to 66.44 billion rupees ($899 million) in January to March, compared with a loss of 14.81 billion rupees a year earlier, it said Wednesday. Sales increased 39% to 499.77 billion rupees.Key InsightsA rally in steel prices from Asia to North America has been a boon for steelmakers. South Korea’s Posco, one of the top suppliers outside China, posted its highest quarterly profit since 2011 aided by stimulus and the rollout of coronavirus vaccines, and expects the recovery to continue in the second half.Domestic demand, a focus on debt reduction and strategic growth of Indian assets may support operations and enhance Tata’s business profile despite any near-term operating pressure, according to Bloomberg Intelligence.Before a new wave of infections made India the global hotspot for Covid-19 cases, the International Monetary Fund had forecast the country would be the fastest growing major economy this year, expanding at 12.5%, while the central bank was more cautious, estimating growth at 10.5%. Those projections could come under risk if localized lockdowns in some of the most industrialized states linger.“The second wave of COVID-19 in India is a risk,” Chief Executive Officer T.V. Narendran said at a post-earnings briefing, adding the diversion of oxygen for medical purposes won’t significantly impact production.Demand from steel-consuming industries may be more impacted by the ban on the use of industrial oxygen, he said.Indian mills can step up exports if domestic demand slows and the company will look to ship 10% to 15% of its production overseas this year.Tata Steel is in the process of separating its U.K. and Netherlands units as the Indian steelmaker seeks to reduce drag from the European operations.The mill is “certainly not looking at embarking on any strategic actions on Netherlands at this point of time or in Europe,” and the focus is on the separation, Chief Financial Officer Koushik Chatterjee said at the same event.Market ReactionShares of Tata rose 0.6% in Mumbai before the results were announced, extending this year’s rally to 66%.Analysts have 27 buy recommendations on the stock, 4 holds and 1 sell, according to data compiled by Bloomberg.Get MoreTata Steel cut its net debt by 28% to 753.89 billion rupees in the year ended March and plans to slash it further by more than $1 billion this year.The company said it has restarted its 5 million ton a year expansion in Kalinganagar and expects to complete it by March 2024. The board also approved a final dividend of 25 rupees a share.(Updates with comments from company executives and details in the Get More section)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Swedish steelmaker SSAB has ended talks over a potential acquisition of Tata Steel's Dutch steel mill, it said on Friday, adding a fresh twist to the ongoing consolidation of Europe's steel sector. SSAB announced in November that it was in talks to buy IJmuiden, raising funding concerns among some analysts and SSAB investors about the $2 billion to $3 billion deal. "We carefully evaluated Tata Steel IJmuiden and have concluded that an acquisition would be difficult for technical reasons," SSAB Chief Executive Martin Lindqvist said.
Tata Steel's European works council on Friday said it expected the separation of Tata Steel's Dutch and British operations to continue, despite Swedish steelmaker SSAB's decision to halt talks over the potential acquisition of Tata's Dutch steel mill. "It is unclear how we will proceed, but we expect the separation to continue," works council chair Cinta Groos told Reuters. Groos said she did not expect takeover talks with ThyssenKrupp to be revived, after the European Commission blocked a merger between Tata's European activities and the German company in 2019.