Tata Steel - Will Not Benefit From Inexpensive Ore, Russian Coal: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.We believe Tata Steel Ltd.'s standalone’s H1 FY23 Ebitda is likely to contract by 66% over H1 FY22 driven by lower average selling price, lower demand and peak coking coal costs and high base effect. India operations will not benefit from lower iron ore costs or discounted Russian coal. Hence, the cost structure will only benefit from the reduction in coking coal prices that too for 70-75% of requirement as India operations are captive on coking coal for the balance.We cut our FY23E consolidated Ebitda by 22%, driven by 34% reduction in standalone Ebitda, partially offset by 4% increase in Tata Steel Europe Ebitda. The reduction in domestic Ebitda is driven by:lower than expected sales volume,reduction in average selling price andhigher than estimated coking coal cost..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Tata Steel - Will Not Benefit From Inexpensive Ore, Russian Coal: Motilal Oswal

Tata Steel - Will Not Benefit From Inexpensive Ore, Russian Coal: Motilal Oswal

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