Q1FY22 Result Update - India shines; Stickiness in prices upholds high margin trajectory for FY23 - Upgrade to 'BUY'
TATA steel (TATA) reported Q1FY22 EBITDA above our estimates by 3.5% (in line with consensus estimates) on back of better than expected margins in domestic operations, offset by lower margins in TATA Steel Europe (TSE). Consolidated EBITDA grew 14% QoQ at Rs161.1bn (PLe:Rs155.6bn). We increase our EBITDA estimates for FY22e/FY23e by 24.4%/24.7% on back of higher margins across operations. China's strategy to limit production in tandem with domestic demand and discourage exports has structurally destabilised supplies from China. The...