JSW Steel Ltd - Q3FY14 - First Cut - Microsec

JSW Steel Ltd announced its Q3FY14 consolidated results on 28th January, 2014.

Note: The results are reported after giving effects to the scheme of amalgamation between JSW Steel and JSW ISPAT Ltd which became effective from 1st June, 2013. The figures for the corresponding quarter are strictly not comparable with the current quarter as the effect of the scheme is included in the current quarter.

The company surpassed the consensus estimates on revenue and EBITDA front, but missed it on the bottom-line front. The company's net sales arrived at INR13383.38 crore, which was up by 50.95% YoY and 4.59% QoQ. The spectacular performance in the top-line was on account of 52% volume growth in crude steel and 42% volume growth in saleable steel. The company posted highest ever EBITDA for the quarter at INR2409.41 crore, which was up significantly by 81.02% YoY and 2.62% QoQ. On YoY basis, the huge growth in top-line lead to an uptick in operating level despite increase in expenses. The company's hedging policy which started from August'13 helped company protect against the huge forex losses from the currency volatility in Q3FY14. The company registered net profit excl exceptional items of INR466.49 crore, which was up 2x YoY, but was down by 36.57% QoQ.

Key Highlights:

- The company recorded highest ever Crude steel production of 3.19MT, up 52% YoY
- Saleable sales was up by 42% YoY at 3.08MT
- The company recorded highest ever EBITDA of INR2409.41 crore, up by 815 YoY
- The company recorded highest ever exports of 1MT, accounting for ~60% of the India's total exports.

Source : Equity Bulls

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