Tata Steel: European operations to put up a better show; India's may stay stable
Tata Steel expects the opening up of US markets for exports from Europe to drive incremental volumes along with higher realisation
November 15, 2021 / 11:11 AM IST
Tata Steel | Life Insurance Corporation of India sold 2.02 percent stake in the company via open market transaction, reducing shareholding to 6.94 percent from 8.96 percent earlier.
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
The results for Tata Steel (TSL; CMP: Rs 1,287; Nifty: 18103) for the September quarter were below expectations. India business was impacted due to higher raw material prices while Europe operations performed better than expected.
On the back of higher working capital requirement, net debt reduction was lower than expected.
September quarter results
Revenues increased mainly due to higher steel prices and deliveries. Better realisation was entirely offset by higher royalties on iron ore supplies to Bhushan Power, higher consumption of...