Iron and steel company Tata Group will release Q2 results tomorrow. Analysts expect a series of weak numbers from the company.

The weak results were said to be due to the company’s weak operations in India and Europe. Higher production costs as well as lower realization will impact the company’s Q2 earnings.

The ET Now poll shows that revenue at the company is expected to fall by 14% from Rs 63,430 crore in the June final quarter to Rs 54,298 crore during the period under review. Similarly, profit after tax at major steel firms is seen hit by more than 62% to Rs 2,932 crore from Rs 7,764 crore.

Margins at the company are also seen shrinking from 24% to 12.7% quarter on quarter (QoQ). During the same quarter last year, the company reported margins of 27%.

Declining steel prices, both in domestic and export markets, together with high energy costs in Europe are expected to reduce the number of companies during the quarter.

The main concern will be management’s guidance on European operations and guidance with respect to the transition to green energy.

In the previous quarter, the company’s PAT fell lower year-over-year (YoY) by 13% to Rs 7,765 crore. Nevertheless, the company’s total revenue from operations surprised the Street by recording year-over-year growth of 18.6%.

In September, the company announced the merger of seven metals and mining companies into itself to simplify the group’s holding structure as well as to minimize costs. Companies that will be merged into Tata Steel, among others

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