Tata Steel PAT to Post Double-Digit Dip in Q3FY23

SEATTLE (Scrap Monster): ICICI Direct, in its latest metal sector quarterly review report, predicts Tata Steel to report yet another weak quarter in Q3FY23 ending 31^st December, 2022. The company is due to present its quarterly results today.

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According to the report, the steelmaker’s profit is expected to dip by more than half during the quarter, upon comparison with the prior quarter. Furthermore, it anticipates massive dip in profits year-on-year. The revenue as well as profit after tax (PAT) are projected to decline during the quarter. The company had reported PAT and revenue of INR 1,514 crore and INR 59,877.52 crore respectively in Q2FY23. The Tata Steel European operations are likely to post modest EBITDA loss.

ICICI Direct expects Tata Steel’s standalone operations to report an EBITDA of INR 12,500 per tonne, as compared with INR 10,177 per tonne in the prior quarter. The steel sales volume is likely to surge higher by nearly 5% year-on-year to total approximately 4.5 million tonnes. Also, European steel sales volumes are likely to see a similar surge by 5% quarter-on-quarter.

The brokerage believes the company’s European operations to report EBITDA loss during the quarter. The regional operations are likely to post negative EBITDA of $75 per tonne.