Tata Steel Q3 Results Preview: Net profit likely to fall 89%, margin may slump to 10% from 26%

Tata Steel — a Tata group steelmaker — is likely to report an 89 per cent fall in net profit to Rs 1,012 crore for the quarter ended December 2022 compared with the corresponding period a year ago, according to Zee Business research. Mumbai-based Tata Steel will report its financial results on Monday, February 6. 

The company's revenue is likely to decline 13 per cent to Rs 52,966 crore compared with the year-ago period, owing to lower realisations and weakness in the steelmaker's European business, according to the research. 

The analysts peg the alloy maker's earnings before interest, taxes, depreciation and ammortisation (EBITDA) at Rs 5,282 crore for the three month period, down 67 per cent on a year-on-year basis. 

The company's margin — a key measure of profitability for a business — is likely to slump by 1,600 basis points to 10 per cent, with the EBITDA per tonne estimated to halve to $150 from $303 a year ago, according to Zee Business research.

Tata Steel shares gained 13.4 per cent in value in the quarter ended December 2022, a period in which headline indices Sensex and Nifty50 rose 5.9 per cent each.