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Tata Steel reported a net profit of Rs.7714 crores.

Astral Pipes posted a net profit of Rs. 96 Cr.

Tata Steel reported a net profit of Rs.7714 crores.

Tata Steel reported a PAT of Rs 7714 crore in Q4FY22, down from Rs 9,835 in Q4Y22. The company in Q1FY23 reported an EBITDA of Rs. 14973 crore, compared to an EBITDA of Rs. 15,891 crore in Q4FY22. During Q1FY22, the company recorded its EBITDA as Rs. 15,892 crore. Tata Steel announced a dividend of Rs 51 per equity share in FY22. Tata Steel’s PAT peaked in the second quarter and has fallen since then. The company’s PAT stood at Rs 12,548 crore in Q2FY22. The steel sector has been under pressure due to high input costs of coal and iron ore.

Plans to invest in India and Europe

Tata Steel plans to invest Rs 12,000 crore in India and Europe in FY23, TV Narendran, the company’s chief executive officer (CEO) and managing director (MD), said on July 18. The company expected to invest Rs 8,500 crore in India and Rs 3,500 in Europe. The major focus is on the Kalinganagar Plant in Odisha and plans to expand the plant’s capacity from 3 MTto 8 MT.
Over the last one-month, domestic hot rolled coil (HRC) prices have been range bound and hovered at 57500-9500/tonne. The domestic steel prices has seen sharp fall in coking coal prices augurs well for Indian steel players. The benefit of lower coking coal costs is likely to feed through to the cost base by September 2022 for Tata Steel Indian operations and by Q3FY22 for Tata Steel European operations. For Q1FY23, Tata Steel European operations reported EBITDA/tonne of US$360/tonne (US$89/tonne in Q1FY22 and US$241/tonne in Q4FY22).
Tata Steel plans to restart NINL’s blast furnace in the next three months and ramp up capacity to 80-100 KT/month run-rate by Mar’23. Tata Steel remains committed to its annual deleveraging target of US$1 billion in line with its capital allocation strategy to reduce debt.
Valuations:
The EPS was Rs. 6.36 in the June quarter. The stock is trading at a PE ratio of 3.32x. The EBITDA was at 2.96x. The ROCE and ROE stood at 31.6% and 42.6%, respectively. The stock was trading at Rs.106 on September 8th, down by 1.63%.

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