Tata Steel shares slip over 2% ahead of Q3 earnings; here’s what to expect
Tata Steel shares touched an intraday low of Rs 117.1, down 2.5% on BSE. The stock has gained 0.41% in a year and risen 5% this year.
- Feb 6, 2023,
- Updated Feb 6, 2023 11:56 AM IST
Shares of Tata Steel were trading lower ahead of the metal firm’s December quarter earnings today. Tata Steel shares touched an intraday low of Rs 117.1, down 2.5% on BSE. The stock has gained 0.41% in a year and risen 5% this year. The Tata Steel stock is trading higher than the 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.
At 11:19 am, Tata Steel shares were trading 1.71% lower at Rs 118.05. Total 9.66 lakh shares changed hands amounting to a turnover of Rs 11.40 crore on BSE. Market cap of Tata Steel fell to Rs 1.44 lakh crore. The stock hit a 52-week high of Rs 138.63 on April 6, 2022.
Check share price live: Tata Steel
In terms of technicals, the relative strength index (RSI) of Tata Steel stands at 55.4, signaling it's neither oversold nor undersold. Tata Steel stock has a one-year beta of 1.2, indicating high volatility during the period.
The Tata Group firm is expected to report up to 97 per cent decline in consolidated net profit for the December quarter on a double-digit fall in sales.
Nuvama Institutional Equities sees Tata Steel reporting a 96 per cent YoY fall in net profit at Rs 394 crore compared with Rs 9,766 crore in the year-ago quarter. Revenue is likely to fall 12 per cent YoY to Rs 53,499.40 crore compared with Rs 60,783 crore in the year-ago quarter. It sees Ebitda per tonne to rise 34 per cent sequentially to Rs 11,724 per tonne, owing to the benefit coming from lower coking coal prices due to lag effect.
“The realisation however may fall 3 per cent QoQ to Rs 64,935 per tonne due to fall in steel prices. The major disappointment is expected to come from Europe that should saw Ebitda losses ($79 per tonne compared with Ebitda of $120 per tonne in Q2FY23) due to lower steel prices," it said.
Elara Securities expects profit to come at Rs 353.70 crore. It sees revenue falling 8.9 per cent YoY to Rs 55,119.40 crore. Centrum Broking expects Tata Steel to announce profit at Rs 598.40 crore. It expects revenue for the quarter to fall 10.3 per cent YoY to Rs 54,552 crore.
The firm reported a weak set of earnings for the quarter ended September 2022. Tata Steel's September quarter consolidated profit plunged 90 per cent to Rs 1,297 crore, hit by higher expenses. The Tata group firm had reported a profit of Rs 12,547.70 crore in the same quarter last year.
Also read: Rs 220 or Rs 270, where are Tata Power shares headed post doubling of Q3 profit?
Also read: Tata Motors, Bajaj Auto, Coal India: Nifty cos that led FY24 earnings upgrades post Q3 results
Shares of Tata Steel were trading lower ahead of the metal firm’s December quarter earnings today. Tata Steel shares touched an intraday low of Rs 117.1, down 2.5% on BSE. The stock has gained 0.41% in a year and risen 5% this year. The Tata Steel stock is trading higher than the 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.
At 11:19 am, Tata Steel shares were trading 1.71% lower at Rs 118.05. Total 9.66 lakh shares changed hands amounting to a turnover of Rs 11.40 crore on BSE. Market cap of Tata Steel fell to Rs 1.44 lakh crore. The stock hit a 52-week high of Rs 138.63 on April 6, 2022.
Check share price live: Tata Steel
In terms of technicals, the relative strength index (RSI) of Tata Steel stands at 55.4, signaling it's neither oversold nor undersold. Tata Steel stock has a one-year beta of 1.2, indicating high volatility during the period.
The Tata Group firm is expected to report up to 97 per cent decline in consolidated net profit for the December quarter on a double-digit fall in sales.
Nuvama Institutional Equities sees Tata Steel reporting a 96 per cent YoY fall in net profit at Rs 394 crore compared with Rs 9,766 crore in the year-ago quarter. Revenue is likely to fall 12 per cent YoY to Rs 53,499.40 crore compared with Rs 60,783 crore in the year-ago quarter. It sees Ebitda per tonne to rise 34 per cent sequentially to Rs 11,724 per tonne, owing to the benefit coming from lower coking coal prices due to lag effect.
“The realisation however may fall 3 per cent QoQ to Rs 64,935 per tonne due to fall in steel prices. The major disappointment is expected to come from Europe that should saw Ebitda losses ($79 per tonne compared with Ebitda of $120 per tonne in Q2FY23) due to lower steel prices," it said.
Elara Securities expects profit to come at Rs 353.70 crore. It sees revenue falling 8.9 per cent YoY to Rs 55,119.40 crore. Centrum Broking expects Tata Steel to announce profit at Rs 598.40 crore. It expects revenue for the quarter to fall 10.3 per cent YoY to Rs 54,552 crore.
The firm reported a weak set of earnings for the quarter ended September 2022. Tata Steel's September quarter consolidated profit plunged 90 per cent to Rs 1,297 crore, hit by higher expenses. The Tata group firm had reported a profit of Rs 12,547.70 crore in the same quarter last year.
Also read: Rs 220 or Rs 270, where are Tata Power shares headed post doubling of Q3 profit?
Also read: Tata Motors, Bajaj Auto, Coal India: Nifty cos that led FY24 earnings upgrades post Q3 results