Tata Steel Q2 results today; here’s what analysts say

NEW DELHI: Tata Steel is likely to report net profit of Rs 1,125.30 crore on Monday for the quarter ended September 30, 2017, according to Edelweiss Securities. The company had reported net loss of Rs 49.38 crore in the corresponding quarter last year.

There are expectations that EBITDA/t for domestic operations are also increase owing to price hikes and higher ferrochrome prices.

Edelweiss further added that European operations are expected to post yet another good quarter as price hikes were taken there are likely to offset bulk of the cost escalation and higher Chinese prices should help boost SEA operations' profitability.

“Tata Steel may see 6.9 per cent year-on-year and 47.30 per cent year-on-year rise in topline and EBITDA figures in Q2FY18,” Edelweiss said.

Shares of the company were trading 0.62 per cent up at Rs 730.75 in the early trade ahead of Q2 numbers.

Kotak Institutional Equities expects consolidated EBITDA to increase 5 per cent on quarter-on-quarter (qoq) basis and 76 per cent on year-on-year basis. Adjusted net income may increase by 7 per cent on QoQ basis.

“We expect Tata Steel to report a one-off exceptional charge of GBP 550 mn for payment made to the British Steel Pension Scheme. Tata Steel’s India steel deliveries increased 19 per cent yoy to 3.13 mn tonnes in 2QFY18 from rampup of KPO,” Kotak Institutional Equities said in a research report.