Tata Steel Q2 Review- Improved Capacity, Cost Cutting, Drives Sustainability In Weak Global Macros: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Tata Steel Netherlands’s turned Ebitda positive in Q1 FY25, however, the Ebitda contracted during the quarter due to weaker European demand, lower realisations and higher other expenses on account of emission, consumables and bulk gas related costs. The transition phase at Tata Steel UK with the planned de-commissioning of two blast furnaces was also marked by higher costs building further margin pressure in a subdued demand environment, a trend likely to spill into Q3 and Q4. Tata Steel Ltd. maintains 1.4 million tonne incremental volume guidance in FY25, net of intersegment deliveries, primarily from the commissioning of 5mt Kalinganagar expansion. The 5 mt KPO II expansion is estimated to produce 3.5 and over 4.5 mt volumes in FY26 and FY27, respectively. We revise our FY25/FY26 Ebitda estimates lower by 29%/9% and introduce FY27 estimates. Our estimate revision factors in-Europe’s weak demand dynamics, Tata Steel UK’s high cost transition to downstream operations, andsubdued India steel pricing impacted by heightened imports from China, partially offset by incremental volumes and resulting cost efficiencies from India expansions, and lower raw material costs..We value Tata Steel’s India and Europe businesses at 6.5x and 5x FY27E EV/Ebitda, respectively, arriving at a marginally revised target price of Rs 170/share (Rs 169/share earlier). Our price target revision factors in higher net debt at the end of this quarter. We maintain Hold rating on the stock..Click on the attachment to read the full report:.Trent Q2 Review - Robust Growth, Albeit Weaker Than Lofty Expectations On Store Consolidation: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Tata Steel Q2 Review- Improved Capacity, Cost Cutting, Drives Sustainability In Weak Global Macros: Systematix

The company spent Rs 48 billion capex in Q2 compared to Rs 38 billion in Q1 primarily towards phased commissioning of the 5mt Kalinganagar capacity expansion, adds the brokerage.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Tata Steel Q2 Review- Improved Capacity, Cost Cutting, Drives Sustainability In Weak Global Macros: Systematix

The company spent Rs 48 billion capex in Q2 compared to Rs 38 billion in Q1 primarily towards phased commissioning of the 5mt Kalinganagar capacity expansion, adds the brokerage.

Choose a plan

Follow Us

DOWNLOAD THE APP