Tata Steel is expected to report strong profit, on February 9, in the range of Rs 3,000-4,000 crore for the quarter ended December 2020 driven by its operating performance. The company had reported loss of Rs 1,166 crore in the corresponding period of last fiscal.
Revenue from operations may grow around 12-13 percent while the earnings before interest, tax, depreciation and amortisation (EBITDA) could see a significant jump on account of higher realisation.
"We estimate steel realization to increase 17 percent YoY due to lower exports and higher prices in the domestic market on improved domestic demand. India EBITDA per tonne may increase by 97 percent YoY due to higher realizations, but we expect volumes to decline by 3 percent YoY at 3.3 million tonnes during Q3FY21 due to lower operational days in the quarter," said Kotak Institutional Equities which sees profit at Rs 4,153 crore on revenue growth of 12.3 percent YoY.
Kotak estimates Europe EBITDA per tonne at $34 per tonne as higher steel spreads would be largely offset by higher iron ore prices and EBITDA at Bhushan Steel to increase 572 percent YoY due to higher steel prices. It estimates volumes to decline to 1.25 million tonnes.
According to Motilal Oswal, consolidated profit is expected to be at Rs 3,006.9 crore with EBITDA growth at 119 percent and margin expansion of 1,080 bps YoY.