A Reuters poll of 10 analysts estimated the steelmaker to report a consolidated net profit of Rs 2,552 crore in the period ending March 31, 2018, as against a loss of Rs 1,168 crore a year earlier
Tata Steel is expected to swing back to profit in the fourth quarter ending March 2018, aided by better price realisation.
A Reuters poll of 10 analysts estimated the steelmaker to report a consolidated net profit of Rs 2,552 crore in the period ending March 31, 2018, as against a loss of Rs 1,168 crore a year earlier.
The company will announce its results on May 16.
The poll expects company’s consolidated revenue at Rs 34,869 crore as against Rs 33,896 crore a year earlier.
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The company will be helped by a hike in steel prices, and also a correction in the rates of raw materials like iron ore coking coal.
These market conditions compensated for the trying conditions the company faced in its facilities.
Tata Steel’s production in India for the quarter was impacted by a breakdown in the blast furnace of its facility in Kalinganagar. Its domestic sales declined by 6.23 percent to 3.01 million tons, while production was down 4.06 percent at 3.07 million tons.
The performance was similar in its European unit, where sales dropped to 2.48 million tons, from 2.85 million tons a year earlier. Production was flat at 2.62 million tons.
The street will look out for the company’s outlook for the year, given its participation in the insolvency proceedings. While it has been declared the preferred resolution bidder in the case of Bhushan Steel, Tata Steel is up against a late bid by Liberty House in the auction of Bhushan Power & Steel.
In its European unit, the company had announced that it has begun to look for buyers for five of its non-core assets.
The company could provide guidance on the proposed merger of its European business with that of Thyssenkrupp. The merger has been delayed as of now.