JSW Steel Ltd. share price target

JSW Steel Ltd. (JSW Steel), a part of USD 11bn JWS group is one of the leading steel manufacturer in India with an installed capacity of 18mn tonnes. The company has a wide product range covering the entire flat and long steel. JSW...

Strong quarter: Q4FY17 consolidated EBITDA was up 73% YoY at Rs32bn, in line with our estimate. The rise was mainly due to: (1) higher volumes as the company pushed export sales to counter muted domestic demand,(2) strong realization due to upswing in steel prices

JSW Steel reported a healthy set of Q4FY17 numbers, the better-thanexpected performance was primarily driven by healthy realisation Sales volume for the quarter came in at 3.96 million tonnes (MT), a tad higher than our estimate of 3.9 MT. Gross consolidated topline for the quarter was at | 17917.22 After adjusting for excise duty, net operating income (consolidated) was at | 16656.2 crore (up 55.7% YoY, 18.9% QoQ) above our estimate of | 16182.0 crore) Healthy realisation supported the EBITDA/tonne, which was at | 7586/tonne, up 40.4% YoY (Q4FY16: | 5404/tonne, Q3FY17: |...

JSW Steel (JSTL) delivered a sequential decline in EBITDA/t (Rs 6,964/t, 30.4% YoY, -5.5% QoQ, Est 7,409), vs expectations of flattish profitability. The steel spreads were in line with estimates (Rs 15,832/t or US$237, Est Rs 15,889), while other operating expenses were marginally higher, leading to the miss. JSTL has guided for a saleable steel volume of 15.5 mTPA, ~5.0% growth YoY.

volume of 3.96 mt, up 21% YoY and 9% QoQ. Realizations stood at Rs 42,807/ tn, up 32% YoY and 7% QoQ. Dividend at Rs 2.25/share; Consol net Debt/EBIDTA fell to 3.41x Standalone EBITDA/ tonne rose by 29% YoY and fell by 2% QoQ to Rs 7,586/tn. While, higher volume and realizations helped YoY, higher raw material costs put pressure on QoQ basis. Consolidated EBITDA stood at Rs 31.6 bn (+65x/+10.4% on YoY/QoQ). Coated Products improved further with better volume and reported PAT of Rs 690 mn. US Plate and Pipe mill reported an EBITDA of US$1.31 mn The company has ramped up its projects well and plans for further expansion in both...

JSW Steel (JSTL) has delivered a strong performance in 4QFY17 both on YoY and QoQ basis despite a steep rise in cost of inputs. Marginally beating our estimate of 3.85 mnT, its sales volume grew by 21% YoY and 9% QoQ to 3.96mnT, marking the highest quarterly volume. Its EBITDA/tonne came in at Rs7,586 (+29% YoY and -2% QoQ) vs. our estimate of Rs7,250/tonne, partly due to higher volume and realization at Rs39,847/tonne (+37% YoY and +9% QoQ) vs. our estimate of Rs39,256. Its standalone EBITDA expanded by 55% YoY and 7% QoQ to Rs30bn (vs. our estimate of Rs27.9bn, while APAT grew by 23% QoQ and 172% YoY Rs10bn (vs. our estimate of Rs7bn). Looking ahead, we expect that JSTL's EBITDA/tonne to come under some...

JSW Steels numbers were ahead of our estimates (EBITDA/t: Rs 7,366/t, Est: Rs 6,239/t, 93.1% YoY, 12.2 % QoQ). This was driven by strong apparent realizations (Rs 36,337/t, 28.6% YoY, 15.9% QoQ) which surpassed the visible pricing improvements during the quarter and may be attributable to one-offs in non-steel revenues included in the topline.

JSW Steel reported healthy Q3FY17 numbers amid demonetisation and a sharp increase in raw material prices. The better-than-expected performance was primarily driven by healthy realisations QoQ Sales volume for the quarter came in at 3.64 million tonne (MT), a tad higher than our estimate of 3.6 MT. Gross consolidated topline for the quarter was at | 15312.34 crore. After adjusting for excise duty, net operating income (consolidated) was at | 14012.6 crore (up 61.9% YoY, 5.9% QoQ) higher than our estimate of | 13251.6 crore. The...

JSW Steel (JSTL) has reported another strong quarter despite sequential dip in sales volume. Though sales volume at 3.64mnT was marginally lower than our estimate of 3.7mnT, it grew 43% yoy (down 5% qoq). Notably, in 2QFY17, JSTL recorded its highest ever sales volume in any quarter. Despite 30% yoy and 19% qoq rise in cost of inputs EBITDA/tonne rose by 90% yoy & 9% qoq to Rs7,717 vs. our estimate of Rs6,414, partially aided by inventory gains of Rs2.15bn (~Rs600/tonne). Realization rose by 29% yoy & 15% qoq to Rs36,688/tonne (vs. our estimate Rs35,504/tonne) owing to price hike in every month of 3QFY17 due to rise in international steel prices on the back of cost...

After a subdued FY16, JSW Steel's performance improved in H1FY17. The consol. topline rose 11%, led by ramp up in capacities and rise in exports. The operating profit surged 78% with 860bps gains in OPM (at 22.8%). PAT increased substantially from Rs 78cr in H1FY16, to Rs 1836cr in H1FY17.