Metals, Mining Q2 Earnings Preview - Prices Steady, Volumes To Improve Sequentially: ICICI Direct
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
Commodity price tailwinds coupled with QoQ improvement in volumes is expected to aid domestic metal companies to report a healthy performance in Q2 FY22E.
During Q2FY22E, average steel prices are likely to be QoQ higher by ~Rs 1000-2500/tonne versus Q1 FY22.
Despite a sharp rise, coking coal costs are likely to witness only a marginal increase in Q2 FY22E due to a lag in consumption as steel companies generally maintain a month or two of coking coal inventory.
For Q2 FY22E we expect steel companies to report QoQ improvement in sales volumes on the back of easing of lockdown restrictions.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.