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Tarang Bhanushali, IIFL believes stable earnings in Corus coupled with volume push from domestic capacity and with stable steel prices over the next one year, Tata Steel may report a jump in profit of around 50-60 percent.
Net profit is likely to be at Rs 680 crore as against net loss of Rs 763 crore and net sales may increase 10.9 percent to Rs 35,300 crore versus Rs 31,821.5 crore.
Tata Steel's Q2 sales are expected to increase by 8 percent Q-o-Q (up 3 percent Y-o-Y) to Rs 35327 crore.
Analysts expect the company to report consolidated profit after tax at around Rs 339 crore in second quarter as against net loss of Rs 364 crore in a year ago period. Net sales are seen going up by 3.1 percent year-on-year to Rs 34,904 crore in the quarter gone by.
Tata Steel reported a 90 percent rise in net profit, helped largely by a one-time deferred tax gain at its European unit. Brokerages have revised target and maintains buy rating on the stock. Here is how to trade it now:
Tata Steel will announce Q1 numbers later in the day. Analysts expect its net sales to also drop around 3 percent to Rs 32606 crore. However, EBITDA margins will improve slightly to 9.6 percent on higher volumes at Tata Steel India.
KR Choksey 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.
Prabhudas Lilladher 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.
Kotak Securities expects Tata Steel to report a 100.1 percent degrowth quarter-on-quarter (fall of 99.1 percent year-on-year) in net profit at Rs 5.6 crore.
Motilal Oswal expects Tata Steel to report a 1.3 percent growth quarter-on-quarter (rise of 12.7 percent year-on-year) in net profit at Rs 896.2 crore.
Tata Steel, which reported sharp improvement in EBTIDA per tonne for both Indian and European operation may not able to maintain it throughout FY14, believes Centrum Broking
Tata Steel surprised the street with its operational performance in the January-March quarter earnings. Even its subsidiary Corus turned positive on an EBITDA per tonne basis.
Tata Steel is expected to report over 19 percent YoY decline in its March quarter profit due to weak performance in its Europe subsidiary
StarMine's SmartEstimates expects Tata Steel to report a profit of 3.34 billion rupees for the quarter compared with a wider consensus mean estimate of 3.64 billion rupees.
On the back of muted domestic demand and weak performance of its global subsidiary, Tata Steel is likely to post a consolidated net loss in December quarter, say analysts.
In an interview to CNBC-TV18, Varun Lohchab, MD & Co-Head of Research, Religare Capital Markets said that from result perspective, it will not be a great quarter especially for the steel companies.
With the September quarter earnings season just concluded, analysts are now taking stock of the numbers, and the hits and misses.
The world's 6th largest steel making company Tata Steel is set to declare its second quarter numbers today. Analysts on an average expect the company's consolidated profit after tax to fall by 5.8 percent year-on-year and 66 percent quarter-on-quarter to Rs 200 crore for the quarter.
Kotak Securities has come with its September`12 quarterly earning estimates for metal & mining sector. According to research report, the steel consumption growth has dropped sharply in August, according to JPC data registering a meager 3.7% Y/Y growth compared to a 7.8% growth during the April-July period due to slowing end user demand.
In an interview with CNBC-TV18, Koushik Chatterjee, Group CFO of Tata Steel said both Europe and India saw an increase in steel prices in Q1 and domestic operations were supported by higher realisations.
Despite disappointing earnings, Angel Broking is bullish on Tata Steel at these levels. Given Coal India‘s better than expected Q1 earnings, the broking firm is likely to upgrade the stock from neutral to accumulate.
Tata Steel, one of the world's top ten steel producers, is set to announce its results for the quarter ended June 2012 on Monday. Analysts on an average expect the profit after tax to fall by 87.6% year-on-year to Rs 655 crore, but quarter-on-quarter the same is expected to jump 51.1%.
Prabhudas Lilladher has come with its June quarterly earning estimates for metal & mining sector. The research firm maintain negative outlook on the sector as deteriorating demand environment raises downside risks to steel pricing.
Steel companies are likely to report a muted performance for the June quarter due to lower volumes on account of demand worsening during the quarter.
Indian corporate earnings results for Jan-March 'should be weak', warns Bank of America-Merrill Lynch, adding that it sees potential for a market correction.