- 26 Jul 2022
- ICICIdirect Research
Tata Steel reports healthy consolidated performance for Q1FY23, European operations surprises positively…TATASTEEL - 104 Change: 1.10 (1.07 %)
News: For Q1FY23, Tata Steel’s consolidated operations reported a topline of Rs 63430 crore, up 19% YoY however down 9% QoQ, higher than our estimate of Rs 59280 crore. Consolidated reported EBITDA for the quarter stood at Rs 14973 crore, while consolidated adjusted EBITDA for the quarter stood at Rs 14348 crore, higher than our estimate of Rs 12497 crore. Ensuing consolidated reported PAT for the quarter stood at Rs 7714 crore (down 21% YoY and 22% QoQ), higher than our estimate of Rs 7198 crore.
Views: Tata Steel reported healthy consolidated performance for Q1FY23, wherein consolidated topline, EBITDA and PAT all came in higher than our estimate. Healthy performance from the Tata Steel’s European operations aided the overall beat at the consolidated level. During Q1FY23, Tata Steel’s European operations achieved highest ever quarterly EBITDA of Rs 6037 crore (up 294% YoY and 39% QoQ). For Q1FY23, Tata Steel standalone operations reported sales volume of 3.9 Million tonnes (MT), down 3% YoY and 22% QoQ (our estimate of 3.9 MT). Tata Steel standalone operations reported adjusted EBITDA/tonne of | 21326/tonne (down 10% QoQ, 35% YoY), higher than our estimate of Rs 20500/tonne. European operations reported a strong beat on the EBITDA front aided by long term contracts and product mix. For Q1FY23, Tata Steel European operations reported EBITDA/tonne of US$ 365/tonne significantly higher than our estimate of US$ 250/tonne (US$ 89/tonne in Q1FY22 and US$ 241/tonne in Q4FY22).