Tata Steel Q3 Review - Deleveraging Surprises As Europe Disappoints: ICICI Securities 
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 Q3 Review - Deleveraging Surprises As Europe Disappoints: ICICI Securities 

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ICICI Securities Report

Deleveraging (Rs 103 billion in Q3 FY21) through controlled capex aided by a strong steel cycle, and significant working capital release stood out from Tata Steel Ltd.’s Q3 FY21 results.

The extent of working capital release continues to surprise and has been a key contributor towards deleveraging in nine months FY21 - reported Ebitda of approximately Rs 161 billion against deleveraging of ~Rs 186 billion in nine months FY21.

Mark to market Tata Standalone Ebitda approaches an all-time high print of Rs 28,000/tonne – a red flag.

Q3 FY21 adjusted consolidated Ebitda was lower than estimates mainly on Europe disappointment.

Click on the attachment to read the full report:

ICICI Securities Tata Steel Q3FY21 Results Update.pdf

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