- 01 Nov 2022
- ICICIdirect Research
TATA STEEL REPORTS STEADY OPERATIONAL PERFORMANCE IN Q2FY23
TATASTEEL - 148 Change: -3.38 (-2.24 %)News:
For Q2FY23, Tata Steel’s consolidated operations reported a topline of Rs 59878 crore, down 1% YoY and 6% QoQ, broadly in-line with our estimate of Rs 59697 crore. Consolidated reported EBITDA for the quarter stood at Rs 6060 crore, down 63% YoY and 60% QoQ, while consolidated EBITDA margin for the quarter stood at 10.1% (27.3% in Q2FY22 and 23.6% in Q1FY23). For the consolidated operations, effective tax rate for the quarter stood at 50% notably higher than our estimate of 25% (Effective tax rate of 35% in Q1FY23 and 11% in Q2FY22). Ensuing consolidated reported PAT for the quarter stood at Rs 1297 crore (down 90% YoY and 83% QoQ)
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Tata Steel reported operationally steady set of numbers for Q2FY23, wherein reported EBITDA/tonne of standalone operations came in broadly in line with our estimate, while EBITDA/tonne of European operations came in higher than our estimate. Tata Steel standalone operations reported adjusted EBITDA/tonne of Rs 10177/tonne (down 67% YoY, 52% QoQ), broadly in line with our estimate of Rs 10000/tonne. For Q2FY23, Tata Steel European operations reported EBITDA/tonne of US$ 120/tonne higher than our estimate of US$ 100/tonne (US$ 211/tonne in Q2FY22 and US$ 365/tonne in Q1FY23). On the Balance-sheet front, Tata Steel’s consolidated net debt increased sequentially by ~ Rs 17249 crore and stood at Rs 71753 crore as on 30th September 2022. The increase in net debt was on account of bunching of large pay-outs during Q2FY23 which included NINL acquisition, FY22 dividend pay-out and growth capex
Impact:
Neutral