JSW Steel Q1 Review - Earnings Surge Owing To Record Steel Prices: Systematix
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Research Report
JSW Steel Ltd.’s Q1 FY22 consolidated Ebitda of Rs 94.9 billion (up 152% y-o-y, up 6% q-o-q) was 12% above our estimates, largely due to a sharp 86% y-o-y ($420/tonne) and 18% q-o-q ($136/tonne) surge in realisations.
Raw material costs increased by 31% y-o-y ($99/tonne) and 16% q-o-q ($74/tonne) q-o-q.
As a result, JSW Steel's Ebitda margins surged to $359/tonne (versus the previous highest-ever margin of $314/tonne in Q2 FY08).
We expect the current earnings surge to moderate over the next few quarters given-
steel prices are likely to stabilise,
higher costs for coking coal,
gradual ramp-up of the new five million tonne Dolvi, Maharashtra steel plant and
consistent performance of international subsidiaries.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.