Tata Steel - Growth, Deleveraging On: Centrum Broking

The Tata Steel Ltd. logo sits on a flags flying outside the Tata Steel Ijmuiden BV plant in Ijmuiden, Netherlands. (Photographer: Jasper Juinen/Bloomberg).

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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Centrum Tata Steel - Company Update.pdf

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