Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

JSW Steel - Q2FY21 Result Update - ICICI Securities

Posted On: 2020-10-26 06:32:42

JSW Steel reported a healthy set of Q2FY21 numbers wherein topline, EBITDA and PAT came in higher than our estimate. On a standalone basis, the company reported sales volume of 4.12 million tonnes (MT) (vs. our estimate of 4.0 MT). As domestic steel demand rebounded from recent lows and gained momentum, JSW Steel reduced the share of exports in its overall volume-mix. In Q2FY21, exports as a percentage of total sales fell to 28% vs. 57% in Q1FY21. Consolidated topline came in at Rs. 19264 crore (up 13% YoY, 64% QoQ), higher than our estimate of Rs. 18331 crore. Topline came in higher than our estimate on the back of better-than-expected realisations. Consolidated EBITDA came in at Rs. 4414 crore (up 95% YoY, 229% QoQ), higher than our estimate of Rs. 3525 crore. Consolidated EBITDA margin came in at 22.9% (up 1150 bps QoQ, 970 bps YoY), higher than our estimate of 19.2%. Healthy EBITDA margins were on account of lower price of imported coal, better operating leverage and savings in procurement costs, fixed overheads. However, this benefit was partially offset by increase in iron ore prices. Ensuing consolidated PAT for Q2FY21 was at Rs. 1595 crore, higher than our estimate of Rs. 1085 crore.

Valuation & Outlook

JSW Steel's blended realisations increased ~11%, thereby aiding healthy performance for the quarter. On the back of strength in steel prices, we expect the good performance to continue. Going forward, we model EBITDA margin of 19.4% for FY21E and 20.2% for FY22E. We value the stock on an SoTP basis, thereby arriving at a target price of Rs. 330. We have a HOLD rating on the stock.

For details, click on the link below:

Shares of JSW STEEL LTD. was last trading in BSE at Rs.308.15 as compared to the previous close of Rs. 321.05. The total number of shares traded during the day was 367807 in over 5143 trades.

The stock hit an intraday high of Rs. 318.7 and intraday low of 304.4. The net turnover during the day was Rs. 113624218.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Vardhman Special Steel - Q2FY21 Company Update - ICICI Direct

Initiating Coverage - Advanced Enzyme Technologies - ICICI Direct

L&T - Secures Large Contract - Nov 25, 2020 - Angel Broking

Alembic Pharmaceuticals - Tentative Approval for JV - Angel Broking

Drug launch by Lupin - Tacrolimus Capsules - Angel Broking

Gujarat Gas - Nov 25, 2020 - Angel Broking

Metropolis Healthcare - Nov 25, 2020 - Angel Broking

NTPC - Showcase of strength & competitiveness - ICICI Securities

Telecom - Market Share TRACKER - Bharti is narrowing the gap on incremental market share vs RJio - ICICI Securities

Cochin Shipyard - Q2FY21 Result Update - ICICI Direct

Engineers India - Q2FY21 Result Update - ICICI Direct

Rupee - Nov 24, 2020 - Reliance Securities

FMCG Sector Update - Recovery unlocked; lower growth divergence - HDFC Securities

Engineers India - Consultancy segment outperformance - ICICI Securities

Engineers India - Q2 FY21 Result Update - YES SECURITIES

Motherson Sumi Systems - Company Update - Virtual Investor Conference - ICICI Direct

Mutual Fund Review - November, 2020 - ICICI Direct

Sadbhav Engineering - Q2FY21 Company Update - ICICI Direct

IRB Infrastructure - Q2FY21 Company Update - ICICI Direct

Vodafone Idea fund raising - Angel Broking

Rupee - Nov 23, 2020 - Reliance Securities

Crude Oil - Nov 23, 2020 - Reliance Securities

Q2FY21 Bank Result Quick Review - Angel Broking

Banks & NBFC's Sector Update Report - Yet another watershed moment? - HDFC Securities

Galaxy Surfactants - EBITDA/kg has an upside risk - ICICI Securities

Diagnostics - COVID-19 tests continue to trend higher - ICICI Securities

Banking & Financial Services - Sector Update - Nov 22, 2020 - ICICI Direct

Dalmia Bharat Sugar - Q2FY21 Company Update - ICICI Direct

Balkrishna Industries - Industry export growth momentum continues - ICICI Securities

Covid Recovery Pulse - Festive positivity continues in auto retails, E-way bill generation improves... - ICICI Direct

Quant Pick - Exide Industries - ICICI Direct

Shankara Building Products - Q2FY21 Company Update - ICICI Direct

Triveni Engineering - Q2FY21 Company Update - ICICI Direct

Initiating Coverage on Sudarshan Chemical - Leaping into the league of giants - HDFC Securities

Earnings Wrap Q2FY21: Earnings outperform, post Covid recovery picks up steam - ICICI Direct

Vodafone Idea Positive development beneficial for IDFC first bank - Angel Broking

Lakshmi Vilas Bank - Angel Broking

WIPRO Buyback record date announcement - Angel Broking

TCS buyback record date announcement - Angel Broking

Banks Sector Update - Collection efficiency - a positive surprise! - HDFC Securities

Quant Pick - Max Financial Services - ICICI Direct

Graphite India - Q2FY21 Result Update - ICICI Direct

Gladiator Stocks - Maruti Suzuki India - ICICI Direct

Exide Industries - Q2FY21 Result Update - ICICI Direct

Mishra Dhatu Nigam - Execution outlook remains strong - ICICI Securities

Bharat Electronics - Diversifying into multiple revenue streams - ICICI Securities

Wipro Ltd - Virtual Analyst Meet Update - ICICI Direct

Avadh Sugar & Energy - November 2020 - Company Update - ICICI Direct

Mahindra Lifespace Developers - H1FY21 Company Update - ICICI Direct

Quant Pick - Godrej Consumer Products - ICICI Direct

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019