Q4FY22 Result Preview - Metals & Mining - ICICI Direct

On the back of higher coking coal prices, sequentially, EBITDA/tonne of steel companies is likely to witness a softening trend in Q4FY22E. During the quarter, blended steel realisation is expected to be up sequentially by ~Rs. 1000-3000/tonne, driven by back-ended price hikes and strong export market. However, on the cost side, coking coal costs for the quarter are expected to be higher by ~US$40-50/tonne sequentially. Hence for our coverage universe, higher coking coal cost is expected to lead to a sequential dip in EBITDA/tonne in the range of ~Rs. 1000-3000/tonne QoQ. For Q4FY22E, EBITDA/tonne of Tata Steel (standalone operations) is expected to come in at Rs. 25500/tonne (Rs. 28631/tonne in Q3FY22). For Q4FY22E, standalone operations of JSW Steel are likely to post an EBITDA/tonne of Rs. 14000/tonne (Rs. 16993/tonne in Q3FY22). SAIL's EBITDA/tonne for Q4FY22E is likely to come in at Rs. 7800/tonne (Rs. 8859/tonne in Q3FY22). Steel players are likely to report higher sales volume sequentially. For Q4FY22E, Tata Steel's standalone operations are expected to report sales volume of 5 MT (up 17% QoQ), JSW Steel's standalone operations are expected to report sales volume of 4.9 MT (up 23% QoQ). SAIL's sales volume for Q4FY22E is expected to come in at 4.5 MT (up 17% QoQ).

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Source : Equity Bulls

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Q4FY22 ResultPreview Metals Mining ICICIDirect