Metals And Mining Earning Preview - Strong Quarter, Aided By Healthy Realisation: ICICI Direct
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ICICI Direct Report
For Q4 FY21E, we expect domestic steel companies to report a robust quarter, driven by higher steel prices.
For the quarter, on a sequential basis we expect blended realisation of steel companies to be higher in the range of Rs 5000-7000/tonne (for our coverage universe).
Subsequently, on a QoQ basis, for our coverage universe, we expect Ebitda/tonne of steel companies to increase in the range of Rs 3000-6000/tonne.
Even on the non-ferrous front, on a QoQ basis, zinc, lead and aluminium prices are up 5%, 6% and 9%, respectively.
The uptick in base metal prices augurs well for the operating margins of non-ferrous players.
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