JSW Steel - Peak Margins Expected In Q4 FY21: ICICI Securities
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ICICI Securities Report
JSW Steel Ltd. reported higher than expected standalone Ebitda at approximately Rs 14,444/tonne, up ~ Rs 4,300/tonne QoQ.
Higher auto sales (up 33% QoQ) and lower exports (down 60% QoQ) helped margins.
The realisation increase is higher at Rs 8,600/tonne QoQ, given ~Rs 5 billion of iron ore sales, which given the duties and royalties fail to garner any Ebitda.
The company has witnessed Rs 11 billion of deleveraging in Q3 FY21, despite Rs 15.5 billion acquisition of Asian colour coated.
Bhushan power acquisition, if completed may not allow deleveraging in Q4 FY21.
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