Tata Steel Q1 net seen down 17% at Rs 497 cr: KR Choksey

KR Choksey has come out with its first quarter (April-June) earnings estimates for the metal sector. The brokerage house expects Tata Steel to report a 44 percent degrowth quarter-on-quarter (fall of 17 percent year-on-year) in net profit at Rs 497 crore.

Revenues are expected to decrease by 5 percent Q-o-Q (down 3 percent Y-o-Y) to Rs 32,955 crore, according to KR Choksey.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 28 percent Q-o-Q (down 7 percent Y-o-Y) to Rs 3,158 crore.

EBITDA margin or operating profit margin is likely to be at 10 percent in June quarter as against 13 percent in March quarter and 10 percent in a year ago period.

KR Choksey report on Tata Steel

Subdued sales volume in European market coupled with declining realization prices across the business to impact revenues.

EBITDA income to be under pressure due to european performance.

PAT to decrease sigifnicantly due to higher interest outgo due to high debt level.

Margins continue to hit due to lower realisation and high interest expenses at operating as well as net profit level.