JSW Steel Q3 Review - Robust Performance; Q4 To Be Even Stronger: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

JSW Steel Ltd. reaped the benefits of higher pricing as consolidated Ebitda/profit after tax grew 40%/80% QoQ to Rs 59.1 billion/Rs 26.8 billion, beating our estimates by approximately 12%/19%.

Standalone Ebitda/tonne was at a record high of Rs 14,444 (versus our estimate of Rs 13,123).

We expect Q4 FY21E Ebitda margin to be even stronger Rs 18,000/tonne as spot steel price is ~ Rs 9,000/tonne higher than its Q3 average.

We raise our FY21E Ebitda by 8% to factor in strong pricing.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.