JSW Steel - Q1FY22 First Cut - ICICI Direct

(CMP- Rs. 717, Market Cap- Rs. 173411 crore)

JSW Steel reported healthy performance for Q1FY22, wherein consolidated topline, EBITDA and PAT came in higher than our estimates. Better than expected performance was primarily on the back higher than expected realisations.

Q1FY22 Earnings Summary

For the quarter, JSW Steel reported standalone steel sales volume of 3.61 Million tonnes (MT), up 29% YoY but down 11% QoQ, broadly in line with our estimate of 3.6 MT. Consolidated topline for the quarter stood at Rs. 29802 crore (up 145% YoY, 7% QoQ), higher than our estimate of Rs. 26169 crore

Standalone operations reported EBITDA/tonne of Rs. 26291/tonne, higher than our estimate of Rs. 24000/tonne (EBITDA/tonne of Rs. 19756/tonne in Q4FY21 and Rs. 5104/tonne in Q1FY21)

Consolidated EBITDA stood at Rs. 10274 crore (up 666% YoY, 22% QoQ), higher than our estimate of Rs. 9015 crore. Consolidated EBITDA margin came in at 35.5%, higher than our estimate of 34.4% (EBITDA margin of 31.3% in Q4FY21, 11.4% in Q1FY21)

During the quarter, the joint ventures operations, mainly Bhushan Power and Steel and JSW Ispat special products performed well. The share of profit from JVs for the quarter stood at Rs. 323 crore

Ensuing consolidated PAT for the quarter stood at Rs. 5900 crore (up 30% QoQ), higher than our estimate of Rs. 4533 crore

Shares of JSW STEEL LTD. was last trading in BSE at Rs. 717.4 as compared to the previous close of Rs. 716.7. The total number of shares traded during the day was 501915 in over 12392 trades.

The stock hit an intraday high of Rs. 727.35 and intraday low of 712.05. The net turnover during the day was Rs. 361055706.

Source : Equity Bulls

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