Views on JSW Steel 1QFY2016 Results: Angel Broking

Views on JSW Steel 1QFY2016 Results: Angel BrokingViews of Mr. Rahul Dholam (Sr. Research Analyst – Metal & Mining, Angel Broking) on JSW Steel 1QFY2015 Results:

JSW reported sales volume of 3.11MT slightly below our expectations of 3.25MT. Steel realisation per tonne was however marginally ahead of our expectations at ~$ 560 per tonne v/s our expectation of ~$ 540 per tonne. Standalone revenues were in line with our estimate at INR 11,067cr as against our expectation of INR 11,213cr. Standalone EBITDA came in at INR 1,505cr as against our expectations of INR 1544cr.

Coated division produced and sold 0.4MT in line with our expectations. Operating EBITDA for the coated segment however was ahead of expectations at INR 111cr v/s our expectations of INR 64cr. Plate production at the US mill was below expectations at 58,000 tonnes v/s our expectations of 65,000 tonnes. EBITDA loss at the US mill was much higher than expected at $ 9.4 million for the quarter v/s our estimate of a net loss of $ 1.4 million. We maintain our NEUTRAL view on the stock.

Shares of JSW STEEL LTD. was last trading in BSE at Rs.812.5 as compared to the previous close of Rs. 811.15. The total number of shares traded during the day was 102688 in over 3743 trades.

The stock hit an intraday high of Rs. 817.9 and intraday low of 802. The net turnover during the day was Rs. 83257356.

Source : Equity Bulls

Keywords