Tata Steel Q4 Review - Deleveraging To Drive Near-Term Equity Returns: Systematix
Tata Steel Q4 Review - Deleveraging To Drive Near-Term Equity Returns: Systematix
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Systematix Research Report
Tata Steel Ltd.’s Q4 FY22 consolidated adjusted Ebitda of Rs 159 billion (up 14% YoY, flat QoQ) was in line with our estimates.
Standalone India operations reported Ebitda of Rs 125 billion (up 2% YoY, up 1% QoQ), while that of the Europe operations at Rs 43 billion (up 264% YoY and 48% QoQ).
Tata Steel's earnings were driven by a 35% YoY growth in realisations and higher volumes, offset by higher costs (up 52% YoY).
India and Europe operations reported Ebitda margin of $335/tonne (down 7% YoY and down 12% QoQ) and $245/tonne (up 270% YoY and up 33% QoQ), respectively.
Consolidated gross debt was lower by Rs 152 billion during FY22 at Rs 755 billion; net debt as of FY22 amounted to Rs 512 billion.
Higher coking coal prices led to margins in the domestic steel business falling for the second consecutive quarter.
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