Tata Steel Q3 Results Preview: Net profit likely at Rs 630 crore, EBITDA may grow 25%

Tata Steel Q3 FY24 Results Preview: Tata group steelmaker Tata Steel—the world's tenth-largest steel producer—is all set to report its quarterly financial results on Wednesday, January 24. Analysts widely expect the Tata group steel-making giant to stage a strong financial performance driven by robust growth in standalone domestic operations. 

According to Zee Business research, Tata Steel is estimated to register a consolidated net profit of Rs 630 crore for the quarter ended December 31, 2023, in stark contrast to a consolidated net loss of Rs 2,224 crore for the corresponding period a year ago owing to higher tax expenses, a fall in European realisations amid higher input costs, and subdued steel rates in India. The analysts peg the steel major's quarterly revenue for the December quarter at Rs 59,635 crore, an increase of 4.5 per cent on a year-on-year basis. 

Zee Business analysts estimate Tata Steel's earnings before interest, taxes, depreciation and amortisation (EBITDA) for the fiscal third quarter at Rs 5,067 crore, translating into year-on-year growth of 25.2 per cent. They peg the steel giant's margin for the quarter ended December 31 at 8.5 per cent, up 150 basis points compared with the year-ago period.

Analysts will closely look out for the Tata Steel management's commentary on debt and its European operations. At the end of the September quarter, the company's net debt stood at Rs 77,032 crore. 

Tata Steel set to be back in the black; here's how the steelmaker fared in July-September (Q2 FY24)

For the quarter ended September 30, the company's consolidated net loss stood at Rs 6,196 crore on account of an exceptional item of Rs 6,899 crore. Its revenue came in at Rs 55,682 crore for the fiscal second quarter as against Rs 59,878 crore for the corresponding period a year ago, according to a regulatory filing.

The company's EBITDA for the July-September period fell about 30 per cent to Rs 4,268 crore whereas its margin stood at 7.7 per cent. 

Tata Steel shares: Past performance

As of Tuesday, Tata Steel shares have grown about eight per cent in the past year, underperforming a 17 per cent rise in the headline Nifty50 index.

How big is Tata Steel?

Tata Steel is the world's tenth-largest steel producer with an annual crude steel production capacity of 34 MnTPA, according to its website. 

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