"We expect continued focus on the EU turnaround plans for much of the current fiscal year," JM Financial said while revising estimates upwards primarily on higher spreads at Corus at USD 75 per tonne FY18/19.
More than the results the street will watch out India EBITDA per tonne, Europe EBITDA per tonne, debt reduction plan and JV with Thyssenkrupp.
We will pursue an aggressive growth path in India because India is a place where demand opportunity is going to grow, Koushik Chatterjee, ED (Finance and Corporate), Tata Steel.
The company had posted net loss of Rs 3,213 crore on the back of an exceptional item of Rs 2,857 crore.
Analysts say India business may look good on yearly basis as sales volumes may grow 27 percent YoY (14 percent QoQ) to 2.99 million tonnes, driven by value added products and ramp-up at Kalinganagar. Blended sales realisation is estimated to increase Rs 3000-4000 per tonne QoQ.
Net Sales are expected to increase by 9.6 percent Q-o-Q (up 7.4 percent Y-o-Y) to Rs 30110 crore, according to Religare.
Pritesh Jani of Religare Capital said, "we are entering an uncertain profitability scenario because of coking coal."
Tata Steel's second quarter profit may fall 46.3 percent year-on-year to Rs 821 crore and revenue is seen declining 7.4 percent to Rs 27,150 crore, according to average of estimates of analysts polled by CNBC-TV18.
Sales are expected to increase by 5.7 percent Q-o-Q (down 9 percent Y-o-Y) to Rs 26679 crore, according to ICICI Securities.
Pritesh Jani of Religare Capital Markets says the EBITDA/tonne for Indian business was in line with their expectations. However, Europe at USD 50/tonne was a positive surprise because in last quarter they were at minus USD 15/tonne, so it was a swing of plus USD 65
Tata Steel's first quarter profit is seen falling 61.7 percent to Rs 292 crore and revenue declining 3.9 percent to Rs 29,110 crore compared to year-ago period, according to average of estimates of analysts polled by CNBC-TV18.
Sales are expected to decrease by 1.8 percent Q-o-Q (down 4.4 percent Y-o-Y) to Rs 28970.8 crore, according to ICICI Securities
UK assets sale and likely further revival in Indian operations will be key factors to watch out for.
Credit Suisse maintains an underperform rating with a target price of Rs 180 per share. It expects continued weakness at the European operations as it mothballs existing downstream facilities and realigns production while incurring related fixed costs for a few more quarters.
Revenue is likely to decline 15.7 percent to Rs 28,355 crore in quarter ended December 2015 compared to Rs 33,633 crore in corresponding quarter of last fiscal.
Operating profit may decline 32.3 percent year-on-year to Rs 2,465 crore and margin may contract 190 basis points to 8.3 percent during the quarter.
Sanjiv Paul, MD of Tata Metaliks says that lack of structural changes, like new projects, is dragging the demand.
Revenue during the quarter is seen falling 18.9 percent to Rs 29,526 crore compared to Rs 36,427 crore in same quarter last fiscal.
Weak commodity prices, delayed capex recovery and soft rural demand are the key factors that will weigh on June quarter corporate earnings, says CRISIL Research.
In an interview to CNBC-TV18, Niraj Dalal, founding partner, 3A Capital Advisors says a lot of Nifty companies reported poor Q4 earnings and therefore, the market is currently factoring in a very pessimistic scenario for a couple of those stocks.
While the company‘s European business has held ground, its south-east operations are a concern, says Tarang Bhanushali of IIFL.
Analysts say realisations and volumes will get hit owing to weak global demand. Lower steel realisations will be seen in India as well as Europe while cheap imports from China and from neighboring European nations will impact.
Tata Steel's third quarter consolidated profit after tax is seen falling 58 percent year-on-year to Rs 210 crore, according to the average of estimates of analysts polled by CNBC-TV18.
Tata Steel has reported a 36.8 percent jump in consolidated net profit at Rs 1,254 crore for the July-September quarter led by income from land sale in Mumbai.
Commenting on the performance, Tata Steel group executive director â€“ finance and corporate Koushik Chatterjee said that group‘s South-Asian business posted a loss on account of lower profitability in the Thailand division and a provision in the China vertical while Indian operations reported stable operations despite weak steel prices.