Q4FY23 Preview: Tata Steel: Revenue seen at Rs 59,804 crore, Profit After Tax at Rs 1,090 crore

1 May 2023 , 07:02 PM

Result date: 2^nd May, 2023

Recommendation: Add

Target price: Rs 130

(Source: IIFL Research)

 

Tata Steel could witness ~14% decline in its consolidated revenue over the year-ago quarter, though it could rise 5% sequentially. Ongoing up gradation at Cold Rolling mill could affect the company’s product mix during the quarter. Sequential revenues will be driven by higher HRC prices and improved sales volume, partly offset by unfavorable product mix at its European operations.

Tata Steel’s EBITDA could decline ~75% over the year-ago quarter and rise 32% sequentially. Lower coal costs and improving realizations are key positives. 

The company’s Profit After Tax or PAT could decline sharply both over the year-ago quarter and sequentially, reflecting margin pressure and higher finance costs.

Rs Crore	March 2023 estimates	YoY change	QoQ change
Revenue	59,804	(13.8)%	5.0%
EBITDA	5,350	(64.7)%	32.0%
Profit After Tax	1,090	(109.7)%	(89.0)%

Source: Brokerage estimates