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Tata Steel share hits 52-week high ahead of Q4 earnings

Tata Steel share hits 52-week high ahead of Q4 earnings

The share hit 52 week high of Rs 1,088.35, rising 2.33% against previous close on BSE

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Share of Tata Steel rose over 2 per cent to hit a 52-week high on BSE. The company is all set to announce its earnings for the March 2021 quarter today.

The share hit 52 week high of Rs 1,088.35, rising 2.33% against previous close on BSE. Later, the stock was quoting at Rs 1,078.05, up 1.32 per cent on the BSE. It has given 151 per cent returns over the last six months and risen 292 per cent over the last 12 months.

According to Kotak Institutional Equities, Q4 profit is expected to rise 266 percent, revenue could grow around 40 percent growth and EBITDA is expected to rise 215 percent in Q4 FY21 on a YoY basis.

The brokerage house expects volumes to increase 15 percent YoY (flat QoQ) at 3.3 million tonnes given the low base of COVID-19 impacted Q4 FY20.

"For Q4 FY21, on a consolidated basis, the top line is expected to increase 41 percent YoY and the consolidated EBITDA is expected to increase 202 percent YoY, said ICICI Direct. Consolidated EBITDA margin is likely to come in at 29.4 percent versus 23.9 percent in Q3 FY21 and 13.8 percent in Q4 FY20," said ICICI Direct

Recently, the company announced that it has achieved 4.75 million tonne (MT) of crude steel production in Q4 FY21 compared to 4.60 MT in Q3 FY21 and 4.73 MT in Q4 FY20. For FY21, the company achieved crude steel production of 16.93 MT compared to 18.20 in FY20.

During the quarter, steel production at Tata Steel Europe increased to 2.65 MT compared to 2.59 MT in Q3 FY21 and 2.64 MT in Q4 FY20. For FY21, Tata Steel Europe production was 9.55 MT compared to 10.26 MT in FY20.