Tata Steel's stock price drops 4% after Q4 net profit decreases by 64%

Tata Steel's Q4 net profit (attributable to owners) decreased by 64% to Rs 611.48 crore due to reduced steel prices and underperformance in the company's overseas operations.

The company had recorded a net profit of Rs 1,704.86 crore in the corresponding quarter of the previous year.

During the January-March quarter, Tata Group company's combined revenue decreased by 6.7 % to Rs 58,687.3 crore from Rs 62,961.5 crore in the same period last year.

Tata Steel's stock price on the NSE was at Rs 167.85 at 10 am, showing a 3.7 % decrease from the previous day's closing price.

Indian steel prices continued to face challenges in the quarter due to the increase in imports of finished steel from China, the leading producer.

Revenue generated from operations decreased to Rs 58,687 crore in the quarter, down from Rs 62,962 crore, mainly due to a 4% decline in the core India business that accounted for about 62% of the total revenue. The company also faced one-time costs of Rs 649 crore for shutting down its Sukinda Chromite Block in Odisha and other expenses related to its European operations.

On Wednesday, the Tata Group-run company announced that it will be raising Rs 30 crore by issuing debt securities.