JSW Steel is targeting
operational earnings (Ebitda) of Rs 650 crore for
Monnet Ispat and Energy, which it acquired recently, before it takes a call on the company’s
merger with itself, a senior executive of JSW Steel said. Monnet Ispat will also be required to bring its net debt to
Ebitda ratio down to 3.5x before any of the two parties – JSW Steel or Monnet Ispat – can seek a merger.
"In any one single financial year, if the two conditions are satisfied, then either party has a right for merger into JSW Steel,” Seshagiri Rao, joint managing director of JSW Steel, told analysts after the company announced its third-quarter earnings. In the December quarter, Monnet Ispat earned an Ebitda of Rs 21.6 crore, with sales revenue of Rs 494 crore and net loss of Rs 78 crore.