Shares of Tata Steel plunged to its 52-week low of Rs 475.50 on BSE during Wednesday's session after the steelmaker said on Tuesday that the lower production in Europe will impact its financial results for the third quarter. The company informed in an exchange filing that the production from its European plants fell 12.7% to 2.33 million tonnes in October-December period due to operational issues and shutdowns.
India's Tata Steel on Tuesday said the company’s third quarter financial results will be adversely impacted due to lower production in its European units. Production from its European plants fell 12.7% to 2.33 million tonnes for the third quarter ended December 31 due to shutdowns and operational issues, the company said. The company is currently awaiting approval from the European Commission (EC) to merge its steel unit in Europe with Germany’s Thyssenkrupp, a deal which would create Europe's second-largest steelmaker after ArcelorMittal.
Foreign brokerage firm CLSA has downgraded shares of Tata Steel, JSW Steel and Hindalco Industries saying that deteriorating Chinese demand is likely to keep the commodity prices subdued in near term. The brokerage has cut earnings per share (EPS) estimates for the FY20-FY21 period by 9 – 38 percent to factor in lower commodity prices and a stronger rupee. Shares of Tata Steel ended 4 percent lower at Rs 493.85 on Wednesday while JSW Steel and Hindalco ended down 5 percent and 3.8 percent respectively.