Q1FY24 Preview: Tata Steel: Revenue seen at Rs. 579,759 million, Loss After Tax at Rs. 10,840 million

21 Jul 2023 , 12:00 PM

Result date: 24^th July, 2023

Recommendation: Add

Target price: Rs. 130

(Source: IIFL Research)

Tata Steel could post 9.5% sequential decline in consolidated volumes, even as domestic realization are expected to remain flattish sequentially (due to better product mix and auto contract revisions). As a result, consolidated revenue could decline 7.9% on a sequenatial basis. 

Even as Tata Steel’s Europe business continues to make losses at an operational level, its standalone (domestic) EBITDA is also expected to decline 24% sequentially, owing to higher input costs. Weak demand and higher costs continue to hit performance of the Europe business, even though these pressures could be partly offset by improved sequential realization. 

The tax outgo in this quarter is likely to have been inflated due to non-cash tax on British Steel Pension Scheme.

The company is likely to post Loss After Tax of Rs. 10,840 million on a consolidated basis. 

Rs. Million	June 2023 estimates	YoY change	QoQ change
Revenue	579,759	(8.73)%	(7.93)%
EBITDA	48,778	(66.87)%	(32.30)%
Profit After Tax	(10,840)	(114.45)%	(170.25)%

Source: Brokerage Reports