Tata Steel Q4 net seen down 87%, global demand to drag vol

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.

May 20, 2015 / 13:07 IST

26 Aug, 2025 12:21

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Tata Steel is likely to announce very disappointing March quarter earnings on May 20. According to a CNBC-TV18 poll, the company’s net profit is seen slipping 87 percent to Rs 134 crore in fourth quarter of FY15 from Rs 1036 crore in year-ago period. Turnover is also likely to fall 19.7 percent at Rs 34090 crore against Rs 42428 crore year-on-year. The company has already announced a write down of Rs 5000 crore which will reflect in these numbers.

During the quarter, operating profit is seen down 39.3 percent at Rs 3040 crore versus Rs 5010 crore (Y-o-Y) while operating profit margins (OPM) may come in at 8.9 percent against 11.8 percent (Y-o-Y).

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.

Domestic Iron ore cost will normalise as captive mines have started production in Q4. Benefit of lower iron ore costs will be offset by lower realisation and maybe high cost iron ore inventory. In European business it will be a fight between lower steel prices versus lower costs, say analysts.

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