JSW Steel Q3 Review - Robust Performance; Q4 To Be Even Stronger: Motilal Oswal
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Motilal Oswal Report
JSW Steel Ltd. reaped the benefits of higher pricing as consolidated Ebitda/profit after tax grew 40%/80% QoQ to Rs 59.1 billion/Rs 26.8 billion, beating our estimates by approximately 12%/19%.
Standalone Ebitda/tonne was at a record high of Rs 14,444 (versus our estimate of Rs 13,123).
We expect Q4 FY21E Ebitda margin to be even stronger Rs 18,000/tonne as spot steel price is ~ Rs 9,000/tonne higher than its Q3 average.
We raise our FY21E Ebitda by 8% to factor in strong pricing.
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