Quarterly results: JSW Steel Ltd

Consolidated Results Q2FY17: (Rs. in crore)


    ***EBITDA margin change in bps

JSW Steel’s Q2FY17 consolidated numbers have come in mixed compared to Bloomberg estimates. Revenue has come in 12.9% higher than the estimated Rs 12,771 cr. EBITDA is 53.3% above the estimated figure of 1,930 cr. However, the company has reported a net profit that is 14.8% lower than the estimate of Rs 852 cr.

The consolidated net revenue for the quarter has come in at Rs 14,221 cr, which is higher by 20.3% yoy. This is due to a 22% increase in Crude Steel production led by the recently ramped-up Blast Furnace at Vijayanagar and Dolvi.

Reported EBITDA has risen sharply by 65% yoy to Rs 2,959 cr and EBITDA margins have improved by 557 bps yoy to 20.5%. This was primarily driven due to a 99% decline in the adjustment for changes in inventories of finished goods, work-in-progress and stock-in-trade and 6% yoy decline in total expenses excluding depreciation.

Net profit has jumped 1196.4% yoy to Rs 726 cr with the aid of tax expenses as a percentage of PBT falling to 42% from 67% during the same quarter last year.

Technical View: 

JSW Steel Ltd., ended at Rs. 1651, down by 18.6 points or 1.11% from its previous closing of Rs. 1669.6 on the BSE. The scrip opened at Rs. 1669.6 and touched a high and low of Rs. 1669.6 and Rs. 1618.2 respectively. A total of 669868 (NSE+BSE) shares were traded on the counter. The stock traded above its 50 DMA.