Tata Steel Q3 cons net profit seen down 56% at Rs 443 cr

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India's largets steel company, Tata Steel is set to announce its third quarter consolidated results of FY10; earnings including Tata Steel Europe. According to CNBC-TV18 earnings estimates, the net sales are expected to go up 7% at Rs 27,146 crore as against Rs 25,269 crore, quarter-on-quarter basis (QoQ) while seen down 18% from Rs 33,191 crore, year-on-year basis (YoY).

Earning before interest, tax, depreciation and amortisation (EBITDA) is seen going up at Rs 2,543 crore from Rs 372 crore, QoQ while seen down 45% from Rs 4,601 crore, YoY.

Net profit is likely to be at Rs 443 crore, QoQ and seen down 56% from Rs 1,002 crore, YoY.

Corus volume is expected to go up by 4-10% at 4.1-4.3 MT and Corus EBITDA/tonne at USD 15-17/tonne.

Tata Steel- Factors
-Company expected to report marginal profits
-Corus may see improvement in OPM
-Corus: Better demand, higher volumes
-Corus: Lower raw material costs, resizing
-Corus should be EBITDA positive in H2FY10
-Losses from Teeside need to be monitored
-Outlook remains challenging
-Production cuts of around 20%
-ArcelorMittal posted lower than expected guidance
-Realising over 1 billion pound savings in FY10 on track
-Net debt at the end of September 09 at Rs 50,745 crore
-NatSteel & Tata Steel Thai doing well
-Corus will suffer if raw-material prices rise
-Corus may need to reduce fixed cost base
-Prices rising in Europe
-Gradual recovery in demand and rising input prices
-Expected total sales volume of 8 MT in FY12

Tata Steel: Teeside Issue
-Management decision to mothball issue
-Management's focus on streamlining European operations
-One-time exceptional expense
-Mothballing to lead to lower avg cost of production
-Teeside unlikely to impact Corus topline in FY10-12e