Shares of Tata Steel plunged as much as 3 percent to an intraday low of Rs 184.34 apiece even as the company posted 16 percent year-on-year rise in consolidated net profit in the September quarter, driven by higher revenues, mainly from India operations. Brokerages, however, raised concern about sharper losses in the company's UK operations' earnings before interest, tax, depreciation, and amortisation.
Its UK operations are expected to break-even in the March quarter. However, its European operations' EBITDA is expected to improve going forward, the brokerages said.
Before slipping into the red, shares of the steelmaker had hit a nearly five-month high at Rs 194 apiece as soon as it started trading in the day. However, it fell 3.08 percent, erasing early gains, to 184.34.
At around 1.43 pm, the stock was trading 2.67 percent lower to quote Rs 185.11 apiece from the previous close of Rs 190.20, on the NSE.
Over 26 million shares of the company have changed hands on the exchange so far, which is 5 percent higher than the three-month average daily volume traded.