JSW Steel Q1 Review - Margins Peak Out; Volume Recovery To Drive Earnings: Motilal Oswal
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Motilal Oswal Report
JSW Steel Ltd.’s consolidated revenue/Ebitda/profit after tax was up 7%/22%/38% q-o-q to Rs 289.0 billion/ Rs 102.7 billion/ Rs 59.0 billion and came in up 2%/up 9%/up 15% versus our estimate.
The beat was led by better-than-expected margins in standalone operations.
This is also the highest quarterly Ebitda/profit after tax recorded by JSW Steel.
Standalone Ebitda grew 18% q-o-q to Rs 94.9 billion (up 10% versus estimate) despite 11% decline in volumes to 3.61 million tonne, led by a 20% q-o-q increase in realisation to Rs 71,909/tonne (up 2.4% versus estimate).
It was partly offset by high iron ore and coking coal prices and an increase in power cost.
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