JSW Steel Q4 Review - Focus On Growth To Keep Capex Elevated: Motilal Oswal

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JSW Steel Ltd.’s Q4FY21 result was strong, with consolidated Ebitda/profit after tax growing by 42%/60% QoQ to Rs 84.4 billion/Rs 42.8 billion on higher steel prices.

Standalone Ebitda/tonne was the highest ever at Rs 19,756.

Given its strong growth focus, the company announced an expansion of 6 million tonnes per annum (26%) at its Vijayanagar plant, which should be commissioned by FY24-end.

The to be commissioned 5 million tonnes per anum expansion at Dolvi would expand the company’s capacity by ~60% over the next three years, thereby making it the best play on volumes in the Indian steel sector.

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