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Motilal Oswal: JSW Steel -Strong Project Pipeline To Drive Growth

Motilal Oswal: JSW Steel -Strong Project Pipeline To Drive Growth

The logo of JSW Bengal Steel Ltd. is seen in Salboni, India (Photographer: Adeel Halim/Bloomberg)
The logo of JSW Bengal Steel Ltd. is seen in Salboni, India (Photographer: Adeel Halim/Bloomberg)

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Motilal Oswal Report

JSW Steel Ltd.’s Q2 FY21 results were impressive as consolidated Ebitda grew 85% YoY to Rs 42.5 billion, beating our estimates by 24%.

The beat was led by lower costs, leading to standalone Ebitda/tonne of Rs 10,136 (our estimate Rs 8,754).

We expect Q3 FY21 margins to be even stronger as higher steel prices (hot-rolled coil price currently is Rs 4,000/tonne higher than Q2) and upward revision in fixed price contracts should lead to higher realization.

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Motilal Oswal JSW Steel Q2FY21 Result Update.pdf

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