>TATA STEEL : Result Update Q4 FY10 (INDIA INFOLINE)

■ Consolidated Q4 FY10 revenue jumped 8.7% qoq in dollar terms to US$6.1bn led by higher steel realisations

■ Standalone revenue of 73.3bn, 12.2% higher on a qoq basis and higher than our estimate on account of a 8.3% increase in realisations

■ Volume growth remained flat at 2.1% qoq as the company had announced the mothballing of Teeside plant and had taken maintenance shutdown at one of its blast furnace

■ EBIDTA/ton at Corus increased from US$37 to US$94, higher than street expectations

■ The expansion in EBIDTA was led by an increase in realisations as manufacturing costs largely remained flat on a qoq basis

■ Q4 FY10 adjusted PAT stood at Rs27.9bn, 3x on a qoq basis

■ Standalone profit stood at Rs20bn higher than our estimate of Rs13.5bn

■ We believe that the 26% correction in stock over the last one month is overdone; Upgrade to BUY with a target price of Rs548

To read the full report: TATA STEEL