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26 October, 2014 04:19 IST
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Analysts` take on Tata Steel Q2 results & outlook
Source: IRIS | 12 Nov, 2012, 08.47AM
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Tata Steel, one of the leading steel makers in the world, reported consolidated net loss of Rs 3.64 billion for the quarter ended Sept. 30, 2012 as compared to net profit of Rs 2.12 billion in the same period last year. Analysts on an average had expected net profit to come at Rs 2.6 billion.

Total income increased by 3.62% to Rs 343.35 billion from Rs 331.34 billion for the last year. EBITDA margin decreased 200 bps to 7.2% as compared to 9.2% for the same quarter last year.

We have collated views of analysts on how they view numbers and outlook on Tata Steel:

Goutam Chakraborty, research analyst, Emkay Global Financial Services:

Performance below expectations with negative surprise in domestic business, as EBITDA/ ton shrank to Rs 14,545 (USD 264); Europe EBITDA/ ton stood at USD 2.3. Standalone APAT at Rs 13.4 billion, down 10% YoY and flat QoQ; EBITDA stood at Rs 25.2 billion, down 9% each on YoY and QoQ on 6% fall in realizations to Rs 48,459/ ton and high costs. Europe volume came higher at 3.42 mt raising consol top line by 4% YoY to Rs 341 billion; Realizations fell to USD 1,123/ ton; TSH volume stood at 0.77 mt with EBITDA/ ton at USD 5. Believe pain in European operation to continue, while domestic business also should see lower margins; Maintain our FY14 estimates; Retain `Reduce` with TP of Rs 349/ share.

Rikesh Vinod Parikh, vice-president, equities, Motilal Oswal:

We maintain sell rating on stock largely due to weak demand and price of steel in international markets. Tata Steel reported numbers were lower than estimate, due to higher cost in domestic business. Tata Steel Europe (TSE) reported numbers look in line with estimate.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.



Tata Steel Limited   (Q,N,C,F)*


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