Tata Steel’s net profit in the December quarter is expected to be hit by challenging operations in Europe.

The company will announce its results on January 24.

The company is expected to announce a consolidated net profit of ₹703 crore against the net loss of ₹2,384 crore logged in the same period last year.

On a sequential basis, net profit will decline 16 per cent, according to analyst reports.

Consolidated revenue for the quarter was pegged at ₹56,400 crore, a marginal decline of one per cent compared to same quarter in the previous year.

However, on a sequential basis, revenue will be up 1.3 per cent driven largely by higher sales realisation in Indian operations and increased sales volume in India. However, this was partially offset by lower sales volume and realisation in Europe.

Tata Steel would again be in focus for the changes made in operations in Europe and the update on the union talks, said Yes Securities.

However, at the consolidated level we see margin expansion to take place on the back of stable steel prices and a small impact on the coking coal front, it added.

Axis Capital has predicted a marginal two per cent Q-o-Q dip in EBITDA per tonne at Indian operations to ₹14,705, attributed to increased coking coal consumption costs, despite higher realisations and sales volumes.

In Europe, an anticipated EBITDA per tonne loss widens to $180 from $137 in Q2 FY24, driven by lower sales volume and realisation, partially offset by reduced coking coal consumption costs, it said.