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

30 Apr 2022 , 12:22 PM

Result date: 3^rd 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