Tata Steel Q4 results: Over 30% drop in cosolidated profit likely

NEW DELHI: Tata Steel is all set to report its March quarter results on Thursday.

Brokerage Prabhudas Lilladher is expecting the company to report a 31.4 per cent YoY drop in consolidated adjusted net profit after tax at Rs 2,415.60 crore despite a 25.9 per cent growth in sales to Rs 45,486 crore during the same quarter.

“Tata Steel Europe (TSE) is expected to report 1.5 per cent QoQ fall in Ebitda per tonne to $55 due to weaker spreads and lower scale. Benefitted by higher volume growth partially offset by weaker realisations in domestic business.”

This brokerage sees standalone profit growing 7.1 per cent YoY to Rs 2,115.80 crore.

Emkay Global sees 24.2 per cent growth in consolidated sales at Rs 44,875 crore while it sees profit falling 34.2 per cent to Rs 2,146 crore.

“Expect standalone EBitda per tonne to decline 19 per cent YoY to Rs 12,866 owing to lower steel prices. Shipments are expected to grow 6%YoY to 3.3mt as the standalone operations are mainly focused on domestic operations and last year there were operating issues at KPO,” it said.

Ebitda margin is seen shrinking 316 basis points to 14.8 per cent for the quarter from 18 per cent in the year-ago quarter.