Tata Steel Q1: Prabhudas Lilladher expects loss of Rs 1.4cr

Prabhudas Lilladher has come out with its first quarter (April-June) earnings estimates for the metal sector. The brokerage house expects Tata Steel to report a loss of Rs 1.4 crore during the quarter as against profit of Rs 597.9 crore in a year ago period and profit of Rs 884.3 crore in previous quarter.

Revenues are expected to decrease by 14.1 percent Q-o-Q (down 12 percent Y-o-Y) to Rs 29,779.1 crore, according to Prabhudas Lilladher. Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 31 percent Q-o-Q (down 11.4 percent Y-o-Y) to Rs 3,013.8 crore. EBITDA margin or operating profit margin is likely to be at 10.1 percent in June quarter as against 12.6 percent in March quarter and 10.1 percent in a year ago period. Prabhudas Lilladher report on Tata Steel Tata Steel Europe's (TSE) EBITDA/tonne is expected by USD 22 Q-o-Q at USD 11 on account of higher iron ore cost and lower scale. Thanks to lower earnings in both domestic and TSE, we expect consolidated EBITDA to decline 31 percent Q-o-Q at Rs 30.1 billion. We expect loss of Rs 14 million as against profit of Rs 8.8 billion and Rs 6 billion in Q4FY13 and Q1FY13, respectively.