Tata Steel Q2 Review - Earnings Below Estimates; Debt Reduction Likely To Accelerate: Systematix

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..Systematix Research Report.Tata Steel Ltd.’s Q2 FY22 consolidated Ebitda of Rs 164.5 billion (up 169.3% YoY, up 2.1% QoQ) was 26% below our estimates. Performance of its three key divisions: standalone operations Ebitda was Rs 105 billion, BSL Ebitda (reported earlier) was Rs 31 billion and Tata Steel Europe Ebitda was Rs 33 billion. Earnings were largely driven by a sharp 80% YoY and 12% QoQ surge in realisations. Ebitda margin at $479/tonne (up 145% YoY, down 8% QoQ) was 20% below our estimates, impacted by a combination of lower net sales realisation, volume and higher costs. Near-term costs are expected to rise on account of higher coking coal prices, partially offset by estimated higher volumes. Tata Steel reduced its debt by Rs 114 billion during H1 FY22 and is likely to continue deleveraging aggressively given high free cash flow generation despite dividend and capex outlay..Click on the attachment to read the full report:.DISCLAIMERThis 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.

Tata Steel Q2 Review - Earnings Below Estimates; Debt Reduction Likely To Accelerate: Systematix

Tata Steel Q2 Review - Earnings Below Estimates; Debt Reduction Likely To Accelerate: Systematix

Choose a plan