Tata Steel reported a better than
expected set of Q1FY23 results. Revenues came in at Rs 63430 cr; down 9% QoQ
led by a decline in volumes which were impacted by export duty. Margins
expanded 200 bps QoQ- better than expected. Volumes for the quarter stood at
3.89 MT vs 4.97 MT- impacted by export duty. Revenue per ton rose by Rs. 8,534
QoQ to Rs. 83,625 per ton and adjusted EBIDTA/ton stood at 20332/ton vs
23305/ton QoQ due to the rise in coking coal prices. JP Morgan maintained an
overweight rating on Tata Steel with a target price of Rs 1400 per share. They
say steel prices have bottomed in India given limited imports and lower coking
coal could drive earnings rebound in H2.