Tata Steel Q2 Results Preview: Net profit may fall sharply dragged by European operations; revenue seen down 6% YoY

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Tata Steel Q2 Results Preview: Tata Steel will announce its financial results for the second quarter of FY24 today, November 1. The Tata group company is expected to report a sharp fall in profitability during the July-September quarter of FY24. The overall steel sector is expected to report mixed performance in Q2FY24 due to reduced seasonal demand and lower average selling price (ASP), resulting from decreased ferrous prices.

However, this decline will be partially offset by lower coking coal costs, analysts said. Tata Steel Q2 earnings are likely to be weak with a single digit drop in revenue on a year-on-year basis. The company’s weak performance during the quarter is expected on the back of Tata Steel Europe which is estimated to report EBITDA losses due to poor volumes and realization.

Also Read: Q2 results today: Britannia, Tata Steel, Hero among companies that will post Q2 earnings today As per average analysts’ estimates, Tata Steel’s consolidated revenue in the quarter ended September 2023 is expected to fall 6% to ₹56,285 crore from ₹59,877.5 crore in the year-ago quarter. Brokerage firm Motilal Oswal Financial Services expects Tata Steel’s Q2 net profit to decline sharply by 61.1% to ₹589 crore from ₹1,514.4 crore in the corresponding quarter of last fiscal. It expects the company’s revenue to fall 5.7% YoY to ₹56,464 crore.

At the operating level, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is seen falling 30% YoY to ₹4,242 crore. “We await details on debt reduction and capex timeline, which will double the domestic capacity by FY30," Motilal Oswal said. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial