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Tata Steel share price hits new 52-week high on expectations of robust earnings in Q4 FY21

According to brokerages, the profit and EBITDA (earnings before interest, tax, depreciation and amortisation) in Q4 FY21 are seen rising in triple digits, while revenue could grow around 40 percent compared to the year-ago quarter.

May 05, 2021 / 09:40 AM IST
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Tata Steel share price edged higher at open on May 5 ahead of its quarterly earnings scheduled later in the day.

The stock was trading at Rs 1,069.40, up Rs 5.35, or 0.50 percent at 09:23 hours. It has touched a 52-week high of Rs 1,088.85. It has touched an intraday high of Rs 1,088.85 and an intraday low of Rs 1,068.30.

The steel maker is expected to report robust earnings growth for the March 2021 quarter, driven by higher steel prices and a low base in the year-ago quarter.

According to brokerages, the profit and EBITDA (earnings before interest, tax, depreciation and amortisation) in Q4 FY21 are seen rising in triple digits, while revenue could grow around 40 percent compared to the year-ago quarter.

Also Read: Tata Steel Q4 preview: Higher steel prices, low base to boost profitability

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"We estimate steel realization to increase 14 percent QoQ (up 25 percent YoY) led by higher steel prices in the domestic market, sequential increase in exports and price reset in contracted volumes," said Kotak Institutional Equities which expects volumes to increase 15 percent YoY (flat QoQ) at 3.3 million tonnes given the low base of COVID-19 impacted Q4 FY20.

India EBITDA per tonne is expected to increase by 33 percent QoQ to Rs 26,678 per tonne (up 113 percent YoY) due to higher realizations, the brokerage said.

ICICI Direct also expects Tata Steel to report a healthy performance in Q4 FY21 on the back of strength in steel price.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: May 5, 2021 09:40 am

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