JSW Steel Ltd. share price target

JSW Steel reported stellar Q4FY18 numbers. Sales volume for the quarter was at 4.22 million tonnes (MT), up 7% YoY, 6% QoQ, higher than our estimate of 4.0 MT. Consolidated topline for the quarter was at | 20817 crore (up 25% YoY, 17% QoQ) significantly higher than our estimate of | 18820.6 crore primarily due to healthy realisations Standalone operations posted a robust EBITDA/tonne of | 11950/tonne significantly higher than our estimate of | 10000/tonne (Q3FY18: | 9000/tonne, Q4FY17: | 7586/tonne, Adjusted...

Revenue increased by 13.35% to Rs. 20027.0 Cr in Q4FY18 when compared to the previous quarter. JSW Steel Ltd Q4FY18 results Comment

JSW Steel (JSTL) delivered very strong performance driven by sharp expansion in spreads and improving domestic demand. Consolidated EBITDA increased 28% QoQ / 56% YoY to INR49.2b (14% ahead of est.). Adj. PAT increased 46% QoQ to INR26.7b (est. INR17b). PAT is adjusted for GST gains and deferred tax asset in US, together totaling INR10.9b.

Headline numbers are better than estimates, primarily on account of higher-thanexpected realization of Rs46,680/tonne, up 18% yoy (13% qoq) supported by higher domestic sales. Export Sales proportion reduced to 15% (vs 30% in Q3FY18). Consequently; EBITDA/tn rises by 58%yoy to Rs11950/tn (+33%qoq). Coated products...

JSW, part of the USD8bn O.P. Jindal Group, was incorporated as Jindal Vijaynagar Steel JVSL). It began operations in 1999 with the commissioning...

The crude steel production was 0.41 cr tonnes, which is 7% growth YoY and a 4% growth sequentially Sales volume was 0.39 cr tonnes on standalone basis, which is a 9% growth YoY and 1% sequentially and on consolidated basis the volume was 0.40 Cr tonnes, which is 12% growth YoY...

JSW Steel reported highest-ever quarterly EBITDA of Rs 38 bn in Q3FY18 mainly on higher steel realization. Consolidated EBITDA/ton was Rs 9,700 vs. Rs 7,880 YoY. Q3 was a strong beat to our and consensus estimates. JSW Steel remains one of our top picks in the sector.

JSW Steel Ltd Q3FY18 results comment Revenue increased by 6.2% to Rs. 17669.0 Cr in Q3FY18 when compared to the previous quarter. Also, it grew by 28.07% when compared with Q3FY17

JSW Steel reported a healthy Q3FY18. The performance was driven by healthy realisations and above our estimates on all fronts. Sales volume for the quarter was at 3.97 million tonnes (MT), up 10.3% YoY, 1.8% QoQ, in line with our estimate of 3.95 MT. Consolidated topline for the quarter was at | 17861 crore (up 27.5% YoY, 6.2% QoQ) higher than our estimate of | 16982.2 crore Standalone operations reported a strong EBITDA/tonne of | 9000/tonne, higher than our estimate of | 8500/tonne (Q2FY18:...

Standalone sales increased 1% QoQ to 3.97mt. Share of exports increased 6ppQoQ to 30%. EBITDA/t increased by INR1,533 to INR9,000, primarily led by an increase in average realization. JSW Coated's margins have been facing headwinds from pressure exerted by imports. Capacity utilization and EBITDA at the US mills are gradually improving. Salav's operating performance too is stable. Net debt (incl. acceptances) declined INR11.6b QoQ to INR514b. Capex is likely to be at INR60b in FY18, 25% lower than the earlier guidance. The margin outlook for 4QFY18 is stable at current levels, as there is sufficient steel price increase to offset cost pressure from iron ore and coking coal.