JSW Steel - Negative on short term - Aditya Birla Money

JSW Steel's Q3FY13 results below expectations (Short term negative for JSW Steel)

Fall in steel realisations of ~5% QoQ led to a less-than expected performance by JSW Steel. Operating margins and profits declined to 15.9% and Rs13.1bn respectively.

Going forward, excess domestic capacity in the system is likely to negate the effect of increase in steel demand through government measures and monetary easing on steel prices. Also, raw material prices have started to move up. We view the results and outlook as negative for JSW Steel.

Source : Equity Bulls

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