JSW Steel - 4QFY2013 Result Review - Angel Broking

JSW Steel reported better than expected standalone performance both on top-line and PAT front. JSW Steel's standalone top line declined by 2.8% yoy to Rs. 9249cr (better than our expectation of Rs. 8,779cr). The company's EBITDA however grew by 2.8% yoy to Rs. 1,697cr mainly due to lower raw material and power costs and therefore EBITDA margin also improved by 98bp yoy to 18.4%. The company reported exceptional item related to forex gain of Rs. 130cr during the quarter. Interest expenses grew by 20.3% yoy to Rs. 443cr and depreciation expenses grew by 11.7% yoy to 527cr. The tax rate for the company increased to 37.1% in 4QFY2013 compared to 29.0% in 4QFY2012. Hence, adjusted net profit (excluding exceptional items) decreased by 19.8% yoy to Rs. 443cr (much better than our expectation of Rs. 271cr.)

We maintain our Neutral view on the stock.

Source : Equity Bulls

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