Q4FY22 Preview: Tata Steel: Revenues seen at Rs67,712 crore, PAT at Rs9,810 crore

Result date: 3rd May, 2022
Recommendation: Buy
Target price: Rs1,608
Source: IIFL Research

Tata Steel’s domestic business could report sales volume growth of 17% on a sequential basis, while its European operations could post 9% sequential growth in sales volumes. Consequently, the consolidated revenue growth is pegged at 35% over the year-ago quarter and 11% on a sequential basis.

The standalone business’ profitability though could be impacted by surging coking coal costs, leading to a sequential fall in EBITDA/ton.Tata Steel’s European operations could report EBITDA/tonne of US$200/tonne (EBITDA/tonne of US$182/tonne in Q3FY22). Consolidated EBITDA could grow 17% over the year-ago quarter, while EBITDA margin is estimated at 24.6% as against 26.1% in the December 2021 quarter.

Consolidated Profit After Tax could grow 37% on a year-on-year basis.

Important management insights to watch out for:

·         Outlook on demand across all segments and markets

·         Trends in input cost inflation, pricing action planned and margin levers

 






Rs Crore

March 2022 estimates

YoY change

QoQ change

Revenue

67,712

35%

11%

EBITDA

16,632

17%

5%

Profit After Tax

9,810

37%

2%

Source: Brokerage reports

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( With inputs from indiainfoline)