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.
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