JSW Steel - Q1FY21 First Cut - ICICI Securities

(CMP: Rs. 205, MCap: Rs. 49530 crore)

JSW Steel reported mixed performance for Q1FY21, wherein topline came in lower than our estimate, while consolidated EBITDA and EBITDA margin came in higher than our estimate. The ensuing net loss came largely in line with our estimate.

Q1FY21 Earnings Summary

- On a standalone basis, the company reported sales volume of 2.8 million tonnes (MT) (down 26% YoY, 26% QoQ), broadly in line with our estimate of 2.7 MT. Consolidated operating topline was at Rs. 11782 crore (down 41% YoY, 34% QoQ), lower than our estimate of Rs. 12351 crore.

- Standalone reported EBITDA/tonne was at Rs. 5104/tonne (Rs. 9936 per tonne in Q1FY20 and Rs. 8703 per tonne in Q4FY20) as against our estimate of Rs. 5250/tonne.

- Standalone EBITDA came in at Rs. 1429 crore (our estimate of Rs. 1442 crore), while consolidated EBITDA stood at Rs. 1341 crore (down 55% QoQ, 64% YoY, our estimate Rs. 1255 crore). Prima facie it looks like the subsidiary's performance was better than our estimate. Consolidated EBITDA margin stood at 11.4% (18.8% in Q1FY20 and 18.0% in Q4FY20), higher than our estimate of 10.2%.

- On a consolidated basis JSW Steel reported Finance cost and depreciation expense to the tune of Rs. 1016 crore and Rs. 1047 crore respectively, while other income stood at Rs. 132 crore. Hence the ensuing consolidated net loss for the quarter stood at Rs. 582 crore (our estimate of consolidated net loss stood at Rs. 591 crore)

We would be coming out with the detailed report post the conference call.

Shares of JSW STEEL LTD. was last trading in BSE at Rs.204.9 as compared to the previous close of Rs. 209.45. The total number of shares traded during the day was 459493 in over 4799 trades.

The stock hit an intraday high of Rs. 211.35 and intraday low of 203.35. The net turnover during the day was Rs. 94987914.

Source : Equity Bulls

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