Q2FY24 Preview: Tata Steel: Revenue seen at Rs. 550,208 million, PAT at Rs. 3,561 million

1 Nov 2023 , 09:45 AM

Result date: November 1, 2023

Recommendation: Add

Target price: Rs. 143

Low single digit volume growth and lower realizations are likely to lead to an 8% decline in Tata Steel’s revenue for the September 2023 quarter. Monsoon rains are likely to have an impact on the company’s delivery volumes during the quarter, believe analysts.

Benefits of lower input costs are unlikely to trickle into margins of the company owing to negative revenue and weak operating leverage.

Profit After Tax (PAT) could decline 76.8% over the year-ago quarter.

Important management insights to watch out for:

• Outlook on sales realizations
• Margin drivers and earnings trajectory from here on

Rs. Million	September 2023 estimates	YoY change
Revenue	550,208	(8.1)%
EBITDA	43,316	(28.5)%
PAT	3,561	(76.8)%

Source: IIFL Research