Tata Steel net profit seen to decline 60% at Rs 387 crore
India's trade deficit in January stood at $14.7 billion against $12.8 billion in December month on month.
Tata Steel is likely to report poor numbers for the quarter ending December 2011. High raw-material costs, lower volumes and realizations (mainly in European operations) are likely to affect bottom line.
Rising coal prices and sharp depreciation in rupee in the October-December quarter is likely to adversely impact Indian operations.
Shares of the company traded flat at 11.30 hours. Earlier, Tata Steel stocks had fallen over 1% in early trade.
Consolidated profit after tax (PAT) is seen falling 61% (year-on-year) at Rs 387 crore against Rs 1,003 crore while net sales are likely to rise 3.75% at Rs 30,180 crore against Rs 29,089 crore (YoY).
Factors to watch:
> Consolidated volumes of Tata Steel (Europe) & foreign subsidiaries likely to fall 19% quarter-on-quarter at 5 million tonne
> Consolidated EBITDA (earnings before interest, tax, depreciation and amortization) of Tata Steel Europe & foreign subsidiaries down 17% (QoQ) at $97/tonne
> EBITDA margins seen at 8.6% against 12% (YoY)
Europe business:
> EBITDA per tonne loss of $32 against nearly $64 per tonne for Tata Steel Europe
> Volumes have been flat at 3.45 million for the quarter