ADVERTISEMENT

JSW Steel Q2 Review - Start Of Ebitda Contraction Cycle: ICICI Securities

JSW Steel Q2 Review - Start Of Ebitda Contraction Cycle: ICICI Securities

<div class="paragraphs"><p>Men take shelter from the rain in front of an overhead conveyor at the JSW Steel Ltd. manufacturing facility. (Photographer: Adeel Halim/Bloomberg)</p></div>
Men take shelter from the rain in front of an overhead conveyor at the JSW Steel Ltd. manufacturing facility. (Photographer: Adeel Halim/Bloomberg)

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.

ICICI Securities Report

Majority of the discussion in the Q2 FY22 results conference call of JSW Steel Ltd. revolved around quarterly increase in coking coal price to come through and the levers management has to counter the same.

Coking coal prices at U.S. $400/te has started the Ebitda correction cycle after 5 quarters of upcycle (starting from Q1 FY21).

We expect the cycle to play out over the next 4-5 quarters.

Q2 FY22 print (standalone) was inline at Ebitda (Ebitda/te at Rs22944/te was down Rs 3346/te quarter-on-quarter), while higher other income led to beat in PAT.

Overseas business as well as JSW Coated has witnessed significant traction in the quarter with ~Rs 17.4 billion of subsidiary Ebitda (vis-à-vis ~Rs 7 billion quarter-on-quarter) driving consolidated Ebitda beat.

Click on the attachment to read the full report:

ICICI Securities JSW Steel Q2FY22 Result Update.pdf

DISCLAIMER

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.