Tata Steel Share Gains Ahead of Q4 Results

Shares of Tata Steel are in focus today as the steelmaker is due to report its earnings for the quarter and financial year ending March 2023.

On May 2, Tata Steel shares opened higher, ahead of the steel major’s Q4 income report later. The company’s net profit is projected to drop over 91% YoY to Rs 955 crore amid weak performance in Europe’s industry. Nevertheless, India’s business performance is anticipated to be strong.

At 9:25 am, the stock traded at Rs 108.60 on the NSE, up 0.7% from the previous close. Tata Steel’s revenue from operations is probable to tumble 13% YoY to Rs 60,458 crore in the last quarter.

Kotak Institutional Equities report said that Europe might report an EBITDA loss of $111/ton, driven by weak demand ensuing from an adverse product mix partly offset by moderating costs.

However, the Indian business endures strong. In the provisional update, Tata Steel stated that India’s production volume rose 5.1% YoY to 5.15 million tons in Q4FY22-23.

Tata Steel India’s delivery volume plunged 0.6%, at 5.15 mt in Q4FY23, compared to 5.12 mt in the previous year.

According to deliveries made, the European market slumped 11.3% YoY. Tata Steel Europe’s delivery volume during the quarter resulted at 2.13 mt, besides 2.40 mt in the corresponding period of the previous fiscal.

According to Motilal Oswal Financial Services analysts, management guidance on continuance, pension liability, and support for UK businesses is most significant.

The brokerage firm anticipates EBITDA/ton to recover to $115 from $69 in the last quarter, yet still lower than $249 in Q4FY22.

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