Metals And Mining Sector Preview: Steep Increase In Steel Realisations Drives Q3 Earnings, Says Prabhudas Lilladher
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Prabhudas Lilladher Report
Led by sharp increase in steel prices and lower coking coal costs, we expect Ebitda of our coverage universe to grow 62% QoQ/211% YoY.
Steel realisations are expected to increase by Rs 6,500/tonne QoQ. Costs are expected to remain flat QoQ (except JSW Steel Ltd.) due to lower coking coal costs and higher production.
While, sales volumes are expected to fall 3% QoQ (up 1.5% YoY) due to lower exports and exhausted capacities. Owing to better realisations and flattish cost, Ebitda/tonne would expand by 67% QoQ/207% YoY at Rs 15,585.
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