Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://www.icicidirect.com/mailimages/ICICIdirect_TataSteel_Q4FY12.pdf
I n l i n e p e r f o r m a n c e …
Tata Steel’s Q4FY12 numbers were broadly in line with our expectations.
During the quarter under review, total operating income stood at
| 33998.6 crore (our estimate: | 32539.3 crore) higher marginally by 0.5%
YoY and 2.7% QoQ. Tata Steel group deliveries for Q4FY12 stood at 6.22
MT (5.84 MT in Q3FY12). During the period under review, Tata Steel
India’s deliveries stood at 1.77 MT while Tata Steel Europe deliveries
stood at 3.55 MT and deliveries from South East Asian operations stood
at 0.72 MT. The EBITDA/tonne of Tata Steel India stood at US$330/tonne
while that of Tata Steel Europe was US$8/tonne and South East Asian
operations was US$29/tonne. The EBITDA margin during the quarter
under review stood at 9.3% (our estimate 9.2%), which was lower by 410
bps YoY and higher by 350 bps QoQ PAT of | 433.5 crore in Q4FY12
compared to a PAT of | 4175.6 crore in Q4FY11 (our estimate: | 444.3
crore) sharply lower YoY due to exceptional income in the corresponding
period.
ƒ Operational performance
The results of domestic operations came broadly in line with our
expectation. For domestic operations, the company posted an underlying
EBITDA/tonne of | 16902/tonne broadly in line with our estimate of
| 16759/tonne (EBITDA/tonne for domestic operations in Q3FY12 was
| 16218/tonne). Tata Steel Europe reported an EBITDA of | 146 crore
(US$29 million) in Q4FY12 while the reported EBITDA/tonne was
US$8/tonne (our estimate US$6/tonne).
V a l u a t i o n
We have a cautious view on overseas operations on account of global
macro headwinds. For domestic operations, we have modelled sales
volumes of ~7.4 MT in FY13E and ~8.6 MT for FY14E while for European
operations we have modelled sales volumes of ~13.0 MT in FY13E and
~13.5 MT for FY14E. We have valued the Indian operations at 6.0x its
FY14E EV/EBITDA and European and Asian subsidiaries at 4x its FY14E
EV/EBITDA. We have arrived at a target price of | 430 and assigned a
HOLD rating to the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://www.icicidirect.com/mailimages/ICICIdirect_TataSteel_Q4FY12.pdf
I n l i n e p e r f o r m a n c e …
Tata Steel’s Q4FY12 numbers were broadly in line with our expectations.
During the quarter under review, total operating income stood at
| 33998.6 crore (our estimate: | 32539.3 crore) higher marginally by 0.5%
YoY and 2.7% QoQ. Tata Steel group deliveries for Q4FY12 stood at 6.22
MT (5.84 MT in Q3FY12). During the period under review, Tata Steel
India’s deliveries stood at 1.77 MT while Tata Steel Europe deliveries
stood at 3.55 MT and deliveries from South East Asian operations stood
at 0.72 MT. The EBITDA/tonne of Tata Steel India stood at US$330/tonne
while that of Tata Steel Europe was US$8/tonne and South East Asian
operations was US$29/tonne. The EBITDA margin during the quarter
under review stood at 9.3% (our estimate 9.2%), which was lower by 410
bps YoY and higher by 350 bps QoQ PAT of | 433.5 crore in Q4FY12
compared to a PAT of | 4175.6 crore in Q4FY11 (our estimate: | 444.3
crore) sharply lower YoY due to exceptional income in the corresponding
period.
ƒ Operational performance
The results of domestic operations came broadly in line with our
expectation. For domestic operations, the company posted an underlying
EBITDA/tonne of | 16902/tonne broadly in line with our estimate of
| 16759/tonne (EBITDA/tonne for domestic operations in Q3FY12 was
| 16218/tonne). Tata Steel Europe reported an EBITDA of | 146 crore
(US$29 million) in Q4FY12 while the reported EBITDA/tonne was
US$8/tonne (our estimate US$6/tonne).
V a l u a t i o n
We have a cautious view on overseas operations on account of global
macro headwinds. For domestic operations, we have modelled sales
volumes of ~7.4 MT in FY13E and ~8.6 MT for FY14E while for European
operations we have modelled sales volumes of ~13.0 MT in FY13E and
~13.5 MT for FY14E. We have valued the Indian operations at 6.0x its
FY14E EV/EBITDA and European and Asian subsidiaries at 4x its FY14E
EV/EBITDA. We have arrived at a target price of | 430 and assigned a
HOLD rating to the stock.
No comments:
Post a Comment