25 January 2020 JSW Steels (JSTL) third-quarter result reflects the challenges faced by the industry, with S/A EBITDA/ton at INR5,998 dropping to the lowest level in the past 15 quarters due to a sharp decline in steel prices. Prices have recovered sharply over the past two months, strengthening the margin outlook. We estimate EBITDA/t to improve ~50% QoQ to INR9,000 in 4QFY20. We, however, cut our estimate marginally for FY21 to factor in the delay in the commissioning of the Dolvi plant. Maintain INR26.8b) and PBT declined 81% YoY (-34% QoQ) to INR4.6b due to lower INR4.6b) due to the severe loss in the international subsidiaries. Standalone (S/A) sales volumes were up 10% YoY (+12% QoQ) at 4.0mt, driven by exports (+163% YoY), while domestic volumes declined 8% YoY. Crude steel production also declined 5% YoY (+4.7% QoQ) to 4.02mt. EBITDA/t declined significantly to INR5,998/t (-50% YoY, -7% QoQ) due to lower realization, partly offset by reduced costs.