JSW Steel Q1 Review - Earnings Surge Owing To Record Steel Prices: Systematix
Trucks stand parked near the JSW Steel Ltd. manufacturing facility in Dolvi, Maharashtra, India. (Photographer: Dhiraj Singh/Bloomberg)

JSW Steel Q1 Review - Earnings Surge Owing To Record Steel Prices: Systematix

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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-

  1. steel prices are likely to stabilise,

  2. higher costs for coking coal,

  3. gradual ramp-up of the new five million tonne Dolvi, Maharashtra steel plant and

  4. consistent performance of international subsidiaries.

Click on the attachment to read the full report:

Systematix JSW Steel - Q1FY22 Result Update.pdf


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