Q3FY24 Preview: Tata Steel: Revenue seen at Rs. 541,594 million, PAT at Rs. 5,432 million

24 Jan 2024 , 02:02 AM

Result date: January 24, 2023

Recommendation: Add

Target price: Rs. 136

(Source: IIFL Research)

Tata Steel is likely to post weak set of numbers for the December 2023 quarter. The company’s India volumes as well as realizations could increase by 1%-2% sequentially. Elevated costs though are likely to put some pressure on margins. 

Tata Steel Europe could witness 2% decline sequentially, even as steel spreads globally are likely to decline sharply. This business could post EBITDA loss during the quarter. Consolidated revenue could decline both sequentially as well as over the year-ago quarter.

Profit After Tax or PAT could also decline significantly.

Important management insights to watch out for:

• Demand trends across markets
• Outlook on margins, profitability

Rs. Million	December 2023 estimates	QoQ change	YoY change
Revenue	541,594	(2.90)%	(5.07)%
EBITDA	44,921	5.50%	10.90%
Profit After Tax	5,432	(29.35)%	(130.85)%

Source: Brokerage Reports