- 12 Nov 2021
- ICICIdirect Research
TATA STEEL: CONSOLIDATED TOPLINE, PAT COME IN LINE WITH OUR ESTIMATE; CONSOLIDATED EBITDA MISSES ESTIMATES
TATASTEEL - 148 Change: -3.38 (-2.24 %)News: For Q2FY22, on a consolidated basis Tata Steel reported topline of Rs.60283 crore, up 55% YoY, 13% QoQ, broadly in line with our estimate of Rs.60254 crore. Consolidated reported EBITDA for Q2FY22 was at Rs.16456 crore while adjusted consolidated EBITDA was at Rs.17810 crore (our estimate of Rs.20212 crore). Ensuing consolidated PAT for Q2FY22 was at Rs.12548 crore, up 654% YoY, 28% QoQ, broadly in line with our estimate of Rs.12206 crore
Views: Tata Steel reported a mixed set of numbers for Q2FY22 wherein consolidated topline, PAT came in line with our estimate but consolidated EBITDA came in lower than our estimate. For Indian operations, Tata Steel’s overall sales volume increased 11% QoQ to 4.58 million tonnes (MT), despite market demand contraction amid seasonal weakness. Sales volume to automotive segment increased 18% QoQ despite semiconductor shortage driven weakness in sector. Tata Steel European operations reported sales volume of 2.14 MT, down 6% QoQ and 8% YoY. On the balance-sheet side, net debt declined from Rs.73973 crore as on June 30, 2021 to Rs.68860 crore as on September 30, 2021, indicating a net debt repayment of Rs.5113 crore in Q2FY22.