JSW Steel - Q1FY14 First Cut - Microsec

JSW Steel Ltd announced its Q1FY14 results on 31st July, 2013.

The company arrived at net sales of INR10141.12 crore, which was marginally up by 2.42% and 2.94% on YoY and QoQ basis. On YoY basis, the sales volume of Crude steel and Saleable steel were up by 34% and 21% respectively, but the fall in realizations spoiled the show. The EBITDA for the quarter was INR1879.45 crore, which was down by 1.52% on YoY basis. On consolidated basis, the company posted a net loss of INR381.82 crore, which reflects the exceptional item of INR861.73 crore (forex loss). Adjusting the forex loss, the company posted net profit of INR479.91 crore, which was down by 25.54% on YoY basis, but up by 112.6% on QoQ basis.

The company has given a guidance of 7% growth in Crude steel to 11.20MTPA and 9% growth in Saleable steel to 10.64MTPA for FY14.

At the CMP of INR534, the stock is trading at an adjusted P/E (excluding the forex loss/gain) of 8.11x its TTM EPS of 65.85 and EV/EBITDA of 4.33x its TTM EBITDA of INR6474.91 crore.

Source : Equity Bulls

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