Views on Tata steel 1QFY2016 Results - Angel Broking

Views of Mr. Rahul Dholam (Sr. Research Analyst - Metal & Mining, Angel Broking) on Tata Steel 1QFY2016 Results:

Tata steel 1QFY2016 Results First cut: Strong results led by lower than expected raw material costs

"Standalone revenues declined 13% on a yoy basis and 14% sequentially to INR 9094cr, 3% ahead of our estimate of INR 8,871cr. Realisation per tonne at $ 644/tonne was higher than our estimate of ~$ 611/tonne. Raw material expenses were below our estimate at INR 2,368cr (~26% of revenues), vs. our estimate of INR 2,734. We await clarity from management if the entire imported inventory of iron ore is consumed. Led by the lower than expected raw material expenses, EBITDA was ahead of our expectations at INR 1,689 vs. our estimate of INR 1409cr. EBITDA per tonne improved sequentially to $ 124 as against $ 112 in 4Q15 and our expectations of $ 104.

Consolidated revenue declined 17% YOY an INR 30,300cr, as against our expectation of INR 30,816cr. Consolidated EBITDA came in at INR 2,774, down 35% yoy, but well ahead of our expectations of INR 2,061.27. Consolidated net profit increased 14% to INR 734cr as against our expectations of a loss of INR 335cr. We will review our rating post the conference call with management."

Shares of TATA STEEL LTD. was last trading in BSE at Rs.249.1 as compared to the previous close of Rs. 246.9. The total number of shares traded during the day was 2926040 in over 31086 trades.

The stock hit an intraday high of Rs. 257.9 and intraday low of 246.25. The net turnover during the day was Rs. 737262887.

Source : Equity Bulls

Keywords