NEW DELHI: is likely to post a multifold jump in consolidated net profit for the September quarter on a 60 per cent surge in sales during the same period. Ebitda margin is seen almost doubling on yearly basis.
According to analysts polled by ET NOW, Tata Steel may report a consolidated profit after tax (PAT) of Rs 11,823 crore for the quarter under review against Rs 1,546 crore in the same quarter last year.
Revenues for the quarter are seen rising 59 per cent year-on-year (YoY) to Rs 59,057 crore compared with Rs 37,163 crore posted a year ago.
Ebitda is seen at Rs 19,084 crore compared with Rs 6,227 crore on a YoY basis. Ebitda margin is seen expanding to 32 per cent from 30 per cent in the June quarter and 16.76 per cent in the year-ago quarter.
The margin jump is likely despite an increase in coking coal and raw material prices.
Profitability in European business is seen rising sharply. Tata Steel can deleverage by $1 billion a quarter, analysts said. Domestic steel prices were robust YoY in the September quarter, as average prices for flat, long and semi-finished products moved up to 40-70 per cent YoY range.
Tata Steel’s India sales volumes were down 8 per cent for the quarter on a YoY basis but were up 12 per cent sequentially, analysts said.
Elara Securities is expecting Tata Steel to post a profit of Rs 10,489 crore. It sees sales at Rs 59,720 crore, up 63.7 per cent YoY.
Another brokerage ICICIdirect is expecting Tata Steel’s standalone operations to report an Ebitda per tonne of Rs 36,500 compared with Rs 35,558 in the June quarter and Rs 12,861 in the year-ago quarter. It sees standalone operations to report steel sales volume of 3.5 million tonne (mt) while European operation steel sales are likely to come in at 2.2 mt.
Tata Steel BSL, meanwhile, is expected to report a sales volume of 1.1 mt, as per the brokerage’s estimates.
“We expect European operations to report an Ebitda per tonne of $200. For Q2FY22, on a consolidated basis, the top line is expected to increase 62 per cent YoY to Rs 60,254 crore. The consolidated Ebitda is expected to increase 231 per cent YoY to Rs 20,212 crore. Consolidated Ebitda margins are likely to come in at 33.5 per cent,” it said.
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