Q4 results today: What to expect from Tata Steel, Varun Beverages and Ambuja Cements

We are in the middle of the fourth quarter earnings season and a slew of companies including Tata Steel, Adani Total Gas, Varun Beverages and Ambuja Cements will report their fourth quarter earnings on Tuesday.

Here's a preview of what the numbers might look like for these companies:

Tata Steel
Kotak Institutional Equities expects Tata Steel's realizations to increase by 4.4% quarter-on-quarter (QoQ), led by price hikes and contract resets during the fourth quarter.

Standalone volumes are seen flat year-on-year (+8.3% QoQ) at 4.97 million tons. India EBITDA/ton to recover by 32% quarter-on-quarter to Rs 13,242/ton led by prices hikes partially offset by higher input costs.

The company is expected to report a profit of Rs 955 crore, which will be down almost 90% from Rs 9,756 crore reported in the previous year period. Meanwhile, net sales for the quarter are estimated at Rs 60,458 crore, down 13% year-on-year.

Kotak sees Europe business reporting an EBITDA loss of $111/ton led by weak demand, resulting in an adverse product mix partly offset by sequentially moderating costs.

Varun Beverages
Varun Beverages is expected to report strong 27% year-on-year growth in revenue and 20.3% growth in volumes notwithstanding the disruption of summer in the second fortnight of March following hailstorms in the Delhi/NCR region.

"Strong growth would be driven by share gains in underpenetrated markets, robust 100%+ YoY growth of energy drink Sting. We build in 5% YoY growth in realization, partly aided by superior mix," Kotak Institutional Equities said.

Motilal Oswal has pegged the company's profit to be around Rs 378 crore in the January-March period, which will be higher by around 49% compared with the previous year period. Meanwhile net sales are seen at Rs 3,622 crore.

Varun Beverages, which is one of the largest franchises of Pepsico, will also consider a proposal to split its shares.

Ambuja Cements
Ambuja Cements is expected to report a 7% year-on-year growth in net profit at Rs 530 crore, compared with Rs 495 crore in the same period. Net sales are seen growing 10% to Rs 4,328 crore in the reporting period.

"We estimate volume of 7.9 million tons during the quarter factoring strong growth in January-February 2023 and seasonal tailwinds. We estimate blended realizations to increase by 1.7% QoQ led by price hikes in the first half of the quarter," Kotak Institutional Equities said.

The costs per ton are estimated to decline sequentially by 2.5% largely led by power-fuel cost and operating leverage.

Adani Total Gas
The estimates for Adani Total Gas are not available.

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