Tata Steel is going to announce it's quarter two (July-September) earnings for FY20 (2019-20) on Wednesday (November 6). The Kolkata-headquartered steel-making company has lost nearly 30% of its market capitalisation in the last one year.
Tata Steel had reported sharp 64.5 per cent year-on-year (YoY) decline in its consolidated net profit to Rs 683.13 crore for the first quarter ended June 30, 2019, dented by a decline in steel price and rise in expenses.
Here are key things to watch out for ahead of Tata Steel's Q2 results:
1. According to HDFC's daily view report, Tata Steel's revenues may decline 18% year-on-year (YoY) to Rs 35,569 crore. Its earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to see a sharp 700 bps cut to 13.5%.
2. As per the report, the profit-after-tax (PAT) may go down by nearly 80% (YoY) to Rs 639 crore on weaker realisations.
3. Exports are not likely to help Tata Steel's profitability, CNBCTV18 reported, adding Tata Steel Europe would be a washout.
4. The company's operating leverage is likely to be negative. Nevertheless, it will be partially negated as the company purchases some of its coking coal from the open market, the report said.
5. The company's EBITDA per tonne of nearly Rs 10,300 is expected.