JSW Steel Ltd. share price target

JSW Steels 2QFY17 numbers were below expectations (Standalone EBITDA/t Rs 6,566/t vs est Rs, 7981), primarily due to a hardening in RM costs (Rs 16,867/t, Flat YoY, 15.0% QoQ). Volumes were above estimates (3.84 mT, 20.4% YoY, 15.0% QoQ), helped by strong export performance.

Though JSTL's performance improved substantially on yoy basis, 24% sequential decline in EBITDA/tonne is disappointing despite higher volumes. This fall was due to higher iron ore cost on account of differential pricing by NMDC coupled with lower realization. Raw material prices rose by 15% qoq to Rs16,867/tonne, while overall expenses rose by 6% qoq to Rs24,792. Looking ahead, we believe that while volume and realization will increase in the near-term, raw material prices are expected to rise at...

JSW Steel reported a healthy set of Q2FY17 numbers wherein the topline, EBITDA and PAT came in higher than our estimate. The better-than-expected performance was primarily on account of healthy sales volume. Sales volumes were at 3.84 million tonnes (MT), up 16.4% QoQ, 20.0% YoY and higher than our estimate of 3.5 MT. However, the EBITDA/tonne came in lower than our estimate on the back of higher-than-expected increase in operating costs. The gross consolidated topline for the quarter came in at | 14420.9 crore....

In the recently concluded auctions of category C iron ore mines in Karnataka, JSW Steel has emerged as a preferred bidder in five mines. Estimated resources in these five mines as per tender documents is ~111 million tonnes (MT). The highest final offer price by the company to become a preferred bidder is in the range of 58.9% to 102.52% of average monthly prices of iron ore of different grades and quality published by Indian Bureau of Mines in Karnataka from time to time. The management has indicated it will take all requisite steps as per the tender...

JSW Steel (JSTL) posted an EBITDA/t of Rs 8,937/t (81.6% YoY, 67.4% QoQ) as pricing improved (Rs 32,352/t, flat YoY, 13.4% QoQ) post MIP imposition in Feb-16. Reclassification of RM supply/job work arrangement (owing to IndAS adoption) into finance leases added ~Rs 2.2bn to EBITDA, adjusting for which, it was in line with our estimates (Rs 27.6bn).

9 Sales and other operating income stood at Rs 117bn, +2% vs. our estimate. Higher exportshareandbetterthanexpectedrealisationboostedtherevenues. 9 Consolidatedoperatingprofitwas29%higherthanestimatesatRs32.7bn.Betterthan estimatedperformanceforstandalonebusiness(+28%vs.estimate)andcoateddivision (+58%vs.estimate)aidedtheprofitability. 8 Increase in working capital & decline in acceptances increased the Net debt to Rs 453.5bn(Rs26.7bnimpactofIndAS). Keyhighlights:Higherrealisationsindomestic&strongexportsarbitrageresultedinrobust..;.

JSW Steel reported a healthy set of Q1FY17 numbers wherein EBITDA, PAT came in notably higher than our estimate. A betterthan-expected performance was primarily driven by improved realisations (up 12.5% QoQ to | 32691/tonne) and higher exports...

JSTL's performance improved substantially both on yoy and qoq basis in 1QFY17 due to better realization, higher sales volume and lower costs. EBITDA/tonne increased by 72% yoy & 57% qoq to at Rs9,276. In our view, JSTL's volume and realization would moderate while increase in raw material prices would drag margins in the near-term. Besides, exports which were at elevated levels in 1QFY17 could moderate, going forward due to fall in international steel prices. Notably, despite Minimum Import Price (MIP), the Company earned higher realization on exports to the tune of US$30/tonne...

9 Consolidated operating profit (Rs 18.2bn, +8% vs. estimate) was aided by better than estimatedperformanceforstandalonebusiness(+10%vs.estimate)andcoateddivision (+79%vs.estimate)partlynegatedbyweakperformancefromothersubsidiaries....

JSW Steel (JSTL) has exceeded ours as well as street expectations in 4QFY16 on the back of strong sales volume, lower costs and marginal hike in steel prices. Its standalone EBITDA rose 6% yoy & 102% qoq to Rs17.7bn (v/s our estimate of Rs15.3bn). Steel sales volume rose 7% yoy & 29% qoq to 3.28mn tonne (v/s our estimate 3.2mn of tonne) due to re-commissioning of blast furnaces at Vijaynagar, Salem & Dolvi. JSTL's APAT at Rs3.74bn up 27% yoy topped our estimate of Rs3.2bn despite 74% sequential decline due to tax credit in 3QFY16. As we envisage significant step-up in EBITDA/tonne due to imposition of Minimum Import...