Tata Steel Q1 Review - Results In Line With Estimates; Profit Surge To Continue In The Near-Term: Systematix
The Tata Steel Ltd. logo sits on a sign outside the company’s steel works in Port Talbot, U.K. (Photographer: Simon Dawson/Bloomberg)  

Tata Steel Q1 Review - Results In Line With Estimates; Profit Surge To Continue In The Near-Term: Systematix

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Systematix Research Report

Tata Steel Ltd.’s Q1 FY22 consolidated Ebitda of Rs 159 billion (up 1384% YoY and up 14% QoQ) was in-line with our estimates.

Performance of its three key divisions:

  1. standalone operations Ebitda was Rs 103 billion (up 696% YoY and up 12% QoQ),

  2. BSL Ebitda (reported earlier) was Rs 31 billion (versus Rs 2 billion YoY and up 21% QoQ) and

  3. Tata Steel Europe Ltd.'s Ebitda was Rs 15 billion (up 28% QoQ).

Earnings were largely driven by a sharp 42% YoY and 8% QoQ surge in realisations.

As a result, Ebitda margins surged to $523/tonne (highest since Q1 FY12).

We expect Tata Steel's strong earnings momentum to flow through in H1 FY22 aided by a return to profitability at the European operations.

Click on the attachment to read the full report:

Systematix Tata Steel Q1FY22 Result Update.pdf

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