Shares of Tata Steel Ltd fall 2.3 per cent, surprising traders even as the company's consolidated operating profit for October-December rose 8 percent to 40.1 billion rupees from the previous quarter, beating estimates.
EBITDA per metric tonne was the big positive surprise as it increased 68 percent quarter-on-quarter to $43, analysts say, raising hopes about profitability.
Traders cite some profit-taking after the stock rose 12.8 percent in the five sessions till Tuesday after ArcelorMittal, the world's biggest steelmaker, last week forecast higher profit for this year, compared with a mere 1 percent rise in the NSE index in the same period.
Tata Steel posted a net profit of 5 billion rupees ($80 million) for the December-ending quarter, compared with a net loss of 7.89 billion rupees a year ago.
That missed some estimates because of one-time tax provisions, although some traders say it had been broadly factored in.