Metals Earnings Preview: Strong Q3 Aided By Healthy Realisation, Says ICICI Direct
A furnace strikes sparks on a red hot steel beam. (Photographer: Waldo Swiegers/Bloomberg)

Metals Earnings Preview: Strong Q3 Aided By Healthy Realisation, Says ICICI Direct

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

For Q3 FY21, healthy realisations coupled with subdued operating cost (especially coking coal) is expected to push Ebitda/tonne of steel companies to a multi-year high.

During the quarter, average domestic hot rolled coil prices were at approximately Rs 46700/tonne, up 19% QoQ, 33% YoY.

Furthermore, while during Q3 FY21, average coking coal prices were down 1% QoQ on account of inventory lag impact, the reduction in coking coal costs for steel companies is expected to be in the range of 5-10/tonne U.S. dollar.

Click on the attachment to read the full report:

ICICI Direct Metals Q3FY21 Result Preview.pdf

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