Steel companies may report fall in Q4 earnings growth

摘要

Earnings growth is expected to shrink for steel companies due to falling prices amid USChina trade concerns with signs of a slowdown in China adding to the weakness. Base metal companies too are likely to see a similar trend in March 2019 earnings, according to a leading brokerage house. “Earnings growth is expected to decline on the back of lower spreads with aggregate PAT expected to be lower by 34% year on year,” Motilal Oswal said in its latest Metals Sector March 2019 Results Preview. Average EBITDA is expected to decrease by around 14% turning negative after eleven quarters of y-o-y increase, the report added. Metals companies under its coverage include Hindalco, Hindustan Zinc, Jindal Steel & Power, JSW Steel, Nalco, NMDC, SAIL, Tata Steel and Vedanta mong others.