JSW Steel stock hits all-time high on three-fold rise in Q4 net profit
The JSW Steel stock hit its fresh all-time high today after the company reported a three-fold rise in its consolidated net profit in Q4 on higher commodity prices and spreads. At 9:31 am, the stock was trading at 334 level,down juts 0.79% on the BSE. The stock opened at its all-time high level of 343 but later gave up gains in early trade on profitbooking.
The market capitalisation of the stock stood at Rs 80,263.80 crore on BSE.
The stock has delivered 61.07% returns during the last one year compared with 45.74% returns from the sector. It has risen 23.47% since the beginning of this year. The valuation of the stock looks very expensive when compared with peers such as Tata Steel, SAIL, JSPL and APL Apollo Tubes among others.
Sajjan Jindal-led JSW Steel reported consolidated net profit at Rs 2,879 crore for the fourth quarter ended March 31 against net profit of Rs 1,008 crore in the year-ago quarter.
Net profit at Rs 2879 crore has grown at 158.4% over average profit after tax of the previous four quarters of Rs 1,111.40 crore.
Analysts had expected net profit of Rs 1813 crore, according to Thomson Reuters data.
Total revenue from operations rose 16.2 percent to Rs 20,817 crore and the steelmaker also said it achieved record crude steel production in the quarter at 4.31 million tonnes, up 5 percent year on year.
Its earnings per share (EPS) are the highest at Rs 12.43 in the last five quarters.
Net sales at Rs 20,817 crore have grown at 26.1% over average net sales of the previous four quarters of Rs 16,508.50 crore.
The consolidated total income of the company increased by 16 per cent to Rs 20,862 crore during the quarter under review as against Rs 17,973 crore in the corresponding quarter of the previous fiscal.
Its total expenses increased to Rs 17,275 crore during the fourth quarter of the last fiscal compared to Rs 16,578 crore in the year-ago period.
The company said it "achieved its highest ever crude steel production for the quarter at 4.31 million tonnes , up 5 per cent year-on-year. The company also achieved highest ever quarterly sales volume of 4.22 MT aided by robust domestic demand". JSW said it expects 3 percent year-on-year growth in crude steel production to 16.75 million tonnes for the 2018-19 financial year.
JSW Steel is a part of the diversified JSW Group, which has presence in steel, energy, infrastructure, cement and JSW Ventures.
It is the leading integrated steel company in India with an installed steel-making capacity of 18 million tonne per annum (MTPA).
The shares of the company closed at Rs 336.65 a scrip on the BSE, up 0.87 per cent from the previous close on Wednesday.