Tata Steel 's first quarter profit is seen falling 61.7 percent to Rs 292 crore and revenue declining 3.9 percent to Rs 29,110 crore compared to year-ago period, according to average of estimates of analysts polled by CNBC-TV18. In base quarter (Q1FY16), profit was supported by other income of Rs 762 crore. However, operational performance is likely to be strong with operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) rising 6 percent to Rs 2,940 crore and margin expanding 90 basis points to 10.1 percent on yearly basis. Analysts expect more focus on domestic business and UK asset sales progress. Steel realisations may improve sequentially post minimum import price (MIP). Analysts feel the full impact of steel price increases will be felt in Q1FY17. Standalone business consists of domestic operations and consolidated includes Europe operations. Tata Steel standalone volumes may be flat YoY at 2.14 MT due to shutdown at Jamshedpur unit. India EBITDA per tonne is expected to be at Rs 10,000 against Rs 8,009 in year-ago period and Rs 8,044 in preceding period. Steel sales volumes from its Europe business are expected at approximately 3 MT against 3.44 MT in same period last year due to sale of Scunthorpe assets to Greybull Capital. Scunthrope was a long products business which had less profitability. Analysts expect EBITDA per tonne in the range of USD 20 to USD 30 on improving global steel prices and improving steel spreads in Europe. Weakness in the pound is normally positive for their Europe operations. South East asia operations need to be watched closely and also watch for commentary of UK asset sale.
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