Metals & Mining Q3 Earnings Preview - Margins Returning Back To Realistic Levels: Prabhudas Lilladher
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Prabhudas Lilladher Report
We expect Ebitda of steel companies under our coverage universe to fall sharply by 19% QoQ due to lower volumes and contraction in margins.
Sales volume is expected to contract by 6.5% QoQ due to subdued domestic demand.
Steel realisations would increase by 2.5% QoQ/Rs 1,500/tonne, falling short of expected rise of 10% QoQ/Rs 4,500/tonne in costs on account of higher coking coal cost.
Owing to higher costs partially offset by increase in realisations, Ebitda margins would fall by 14% QoQ/Rs 3,130 to Rs 19,880.
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