Tata Steel - Growth, Deleveraging On: Centrum Broking
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Centrum Broking Report
For Tata Steel Ltd., FY21 was a year marked with life-time high profitability in Indian operations and significant debt reduction.
Carbon cost has kept increasing in Europe and will hit profitability, but post FY25.
Continuous deleveraging, 100% iron ore integration, and thereby, higher margins in India coupled with re-start of growth capex on the brownfield expansion at Kalinganagar will drive future earnings.
We raise our steel price assumption by ~9% for FY22 and by ~3% for FY23, thereby upgrading our Ebitda estimates by 15% for FY22 and by 6% for FY23.
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