Tata Steel shows 90.5% jump in Q1 profit on back of tax gains

Shares of Tata Steel soared by around nine per cent on both the Bombay Stock Exchange and the National Stock Exchange today after the company reported better-than-expected results for the first quarter of the financial year (April-June), with net profit jumping to 90.51 per cent.

The Tata Group company had on Tuesday announced that its consolidated net profit zoomed to Rs1,139 crore during the quarter, primarily due to a deferred tax gain of Rs415 crore.

The company had reported a net profit of Rs597.88 crore in the same quarter last year.

Improved performances of the company in Europe as well as India contributed to the earnings spurt, it said.

Net sales however were down 3 per cent at Rs32,550.21 crore due to the continuing slump in global steel demand. Tata Steel had reported net sales of Rs33,547.73 crore in the year-ago period.