Metals, Mining Q3 Results Preview - Steel Companies’ Ebitda/Tonne To Increase Sequentially: ICICI Direct

ICICI Direct Report

For Q3 FY23E, on a QoQ basis, steel companies are likely to report a sequential increase in Ebitda/tonne to the tune of ~Rs 2500-Rs 3500/tonne, primarily aided by lower coking coal consumption costs.

While on a QoQ basis for the quarter blended steel realisations are expected to decline by ~Rs 1000 to Rs 2000/tonne, the sequential improvement in Ebitda/tonne was primarily on account of lower coking coal consumption costs, which is expected to decline by ~$70-80/tonne in Q3 FY23E compared to Q2 FY23.

For Q3 FY23E, Ebitda/tonne of Tata Steel Ltd. (standalone operations) is expected to come in at Rs 12500/tonne (Rs 10177/tonne in Q2 FY23).

For Q3 FY23E, standalone operations of JSW Steel Ltd. are likely to post an Ebitda/tonne of Rs 7000/tonne (Rs 3477/tonne in Q2 FY23). Steel Authority of India Ltd.’s Ebitda/tonne for Q3 FY23E is likely to come in at Rs 4250/tonne (Rs 1740/tonne in Q2 FY23).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.