Q2FY22 Result Update - Miss due to higher costs; Margin trajectory to remain healthy even after normalisation - BUY
TATA steel (TATA) reported Q2FY22 EBITDA below our estimates/consensus estimates (CE) by 19%/14% at Rs164.6bn (+2% QoQ). The miss was due to lower margins in both domestic and Tata steel Europe (TSE) operations. Sentiments on Chinese demand turned negative over last quarter. Contrary to historical trend of China pushing volumes in the exports market at unfeasible prices levels in wake of soft domestic demand, the flow of Chinese steel exports has been significantly contained this time with stringent curbs on production. Nonetheless, Chinese steel prices came under pressure with...