Shares of Tata Steel Ltd fell over 3% on Tuesday's trading session after the steel major reported a consolidated net loss of ₹2,501.95 crore in the quarter ended December.
According to a regulatory filing, the company reported a net profit of ₹9,598.16 crore at the same period last year. Consolidated total income decreased from ₹60,842.72 crore to ₹57,354.16 crore in the December-ended quarter.
"Tata Steel reported net loss surprising the markets due to sharp drop in realisations in the European region. The European business segment suffered a lot due to slowdown in demand followed by recession concerns weighing on steel prices, which coupled with elevated variable costs affected the performance. While Domestic business delivered a steady growth in volumes and as well as profitability with improvement in product mix despite the volatile operating environment," said Prashanth Tapse, Research Analyst, Senior Vice President Research, Mehta Equities.
However, Tapse said that overall he could see a neutral to negative opening reaction on the stock today. In the long term, he remains optimistic on Tata Steel.
On the technical front, analysts believe that the stock post its Q3FY23 opened with a gap down, the momentum is on the negative side.
" ₹111 is the support if broken can trigger further weakness towards ₹105, while ₹118 is the immediate resistance," said an analyst.
According to Mintgenie poll, 29 analysts have a ‘buy’ rating on the stock.