Tata Steel, India’s largest steelmaker, will announce its first-quarter results for fiscal 2024 this week. Analysts expect the company to report strong revenue growth on strong sales and margin expansion.
Tata Steel, India’s largest steelmaker, will announce its first-quarter results for fiscal 2024 this week. Analysts expect the company to report strong revenue growth on strong sales and margin expansion.
Tata Steel is expected to post strong earnings growth in the first quarter of FY24 on the back of strong sales and margin expansion. The company’s domestic sales are expected to grow by 15-20% annually, while its exports are also expected to grow. The company’s operating margin is expected to improve by 150-200 basis points year-on-year, driven by a favorable product mix and cost savings from the new manufacturing facility in Odisha.
Tata Steel is expected to post strong earnings growth in the first quarter of FY24 on the back of strong sales and margin expansion. The company’s domestic sales are expected to grow by 15-20% annually, while its exports are also expected to grow. The company’s operating margin is expected to improve by 150-200 basis points year-on-year, driven by a favorable product mix and cost savings from the new manufacturing facility in Odisha.
Aniket Mathre, InstL Research Analyst at HDFC Securities, said, “All players will see very exceptional margin improvement for the simple reason that we have been seeing a decline in raw materials for the past few quarters. Most of the key raw materials have declined by 5-22 per cent. Even trucks or passenger vehicles are reporting margin improvement on a relative basis.”
Aniket Mathre, InstL Research Analyst at HDFC Securities, said, “All players will see very exceptional margin improvement for the simple reason that we have been seeing a decline in raw materials for the past few quarters. Most of the key raw materials have declined by 5-22 per cent. Even trucks or passenger vehicles are reporting margin improvement on a relative basis.”
Tata Steel expects sales growth in the first quarter. The company’s domestic sales are expected to grow by 15-20% annually due to strong demand for products in the construction and infrastructure sectors. The company’s exports are also expected to grow due to increasing demand for the company’s products in international markets such as Europe and China. The company is well positioned to benefit from growing demand for steel in India and rising exports of products.
Tata Steel expects sales growth in the first quarter. The company’s domestic sales are expected to grow by 15-20% annually due to strong demand for products in the construction and infrastructure sectors. The company’s exports are also expected to grow due to increasing demand for the company’s products in international markets such as Europe and China. The company is well positioned to benefit from growing demand for steel in India and rising exports of products.
Infrastructure development by the government and increasing demand for steel from the real estate sector. Tata Steel’s margins are expected to expand in the first quarter due to a favorable product mix and cost savings from the new manufacturing facility in Odisha. The company’s product mix is expected to improve in the first quarter as it sells more value-added products such as cold-rolled coils and galvanized sheets. The company’s cost savings are expected to improve in the first quarter as it can benefit from economies of scale at its new manufacturing facility.
Infrastructure development by the government and increasing demand for steel from the real estate sector. Tata Steel’s margins are expected to expand in the first quarter due to a favorable product mix and cost savings from the new manufacturing facility in Odisha. The company’s product mix is expected to improve in the first quarter as it sells more value-added products such as cold-rolled coils and galvanized sheets. The company’s cost savings are expected to improve in the first quarter as it can benefit from economies of scale at its new manufacturing facility.
Tata Steel is well positioned for growth in FY2024. The company is expected to benefit from growing demand for steel in India and rising exports of the product. However, there are some risks to the company’s outlook, such as a slowdown in the Indian economy and rising prices of raw materials.
Tata Steel is well positioned for growth in FY2024. The company is expected to benefit from growing demand for steel in India and rising exports of the product. However, there are some risks to the company’s outlook, such as a slowdown in the Indian economy and rising prices of raw materials.
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