Views on JSW Steel 2QFY2016 Results: Angel Broking

Views of Mr. Rahul Dholam (Sr. Research Analyst - Metal & Mining, Angel Broking) on JSW Steel 2QFY2016 Results:

"JSW reported sales volume of 3.19MT slightly below our expectations of 3.24MT. Steel realisation per tonne was however ahead of our expectations at ~$ 530 per tonne v/s our expectation of ~$ 500 per tonne. Standalone revenues were ahead of our estimate led by the higher realisation at INR 9,653cr as against our expectation of INR 9,345cr. Led by the higher than expected revenue, EBITDA was ahead of our estimate at INR 1,566cr as against our expectations of INR 1,339cr.

Coated division produced and sold 0.36MT in line with expectations. Operating EBITDA for the coated segment however was ahead of expectations at INR 102cr v/s our expectations of INR 94cr. Plate and pipe mill reported utilisation levels in line with our estimates at 25% & 12% respectively. Plate volumes however disappointed at 42,000 net tonnes as against our expectations of 49,000 net tonnes. EBITDA loss at the US mill was lower than expected at $ 3.1 million for the quarter v/s our estimate of a net loss of $ 5.6 million. We maintain our NEUTRAL view on the stock."

Shares of JSW STEEL LTD. was last trading in BSE at Rs.905.8 as compared to the previous close of Rs. 893.7. The total number of shares traded during the day was 115264 in over 4692 trades.

The stock hit an intraday high of Rs. 913.45 and intraday low of 885.25. The net turnover during the day was Rs. 104271782.

Source : Equity Bulls

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