JSW Steel Q4FY16 consolidated net profit grows 18% yoy at Rs.171.25 crore in Q4FY16, vs net loss of Rs. 923.34 crore in Q4FY15 : Beats Estimates

India Infoline News Service | Mumbai | May 18, 2016 15:30 IST

The company’s consolidated revenue stood at Rs. 10,697.52 crore, down 15.1% yoy but up 22.98% qoq.

JSW Steel, country's largest private sector steel company, reported consolidated net profit of Rs.171.25 crore for the quarter ended March 31, 2016, registering growth of 174.53% yoy. However, the company had reported net loss of Rs. 923.34 crore in the preceding quarter. The company’s consolidated revenue stood at Rs. 10,697.52 crore, down 15.1% yoy but up 22.98% qoq.

Its consolidated core operating profit of Rs. 1,824.62 crore for the quarter, clocked growth of 8.45% yoy and 104.59% qoq. Operating profit margin for the current quarter at 17.06% expanded by 371 bps yoy and 681 bps qoq.

For the year ended March 31, 2016, the company reported consolidated net loss of Rs. 741.95crore as compared to net profit of Rs. 1,796.57 crore in the corresponding period of the previous year. Its consolidated revenue for the period stood at Rs. 41,878.88 crore, registering decline of 20.94% yoy.

JSW Steel Ltd's core operating profit stood at Rs. 6,072.99 crore, recording decline of 35.41% yoy. Operating margin for the current period at 15.02% contracted by 273 bps yoy.

On standalone basis,JSW Steel Ltd, reported standalone net profit of Rs.372.19 crore for the quarter ended March 31, 2016, registering growth of 97.21% yoy. However, the company had reported net loss of Rs. 4,142.22 crore in the preceding quarter. The company’s standalone revenue stood at Rs. 9,544.25 crore, down 13.09% yoy but up 31.29% qoq.

Its standalone core operating profit of Rs. 1,774.07 crore for the quarter, clocked growth of 6.01% yoy and 102.06% qoq. Operating profit margin for the current quarter at 18.59% expanded by 335 bps yoy and 651 bps qoq.

For the year ended March 31, 2016, the company reported standalone net loss of Rs. 3,498.28crore as compared to net profit of Rs. 2,166.48 crore in the corresponding period of the previous year. Its standalone revenue for the period stood at Rs. 36,706.92 crore, registering decline of 20.35% yoy.

JSW Steel Ltd's core operating profit stood at Rs. 5,722.52 crore, recording decline of 35.5% yoy. Operating margin for the current period at 16.21% contracted by 304 bps yoy.

JSW Steel (Q4 FY16): Margin pressure recedes:

JSW reported strong set of numbers on the back of some inventory liquidation and lower coking coal costs. The company’s topline of Rs. 10,698cr was inline with estimates as the impact of lower subsidiary contribution was offset by strong growth in standalone entity. Standalone sales volume jumped 28.6% qoq and 7.2% yoy even though 3 furnaces were non-operational for major part of the quarter. Blended realisations improved 2.1% qoq as the transmission of higher steel prices post the implementation of MIP would be witnessed in Q1 FY17. Domestic prices have bounced back 25% from January lows. Standalone EBIDTA/ton was higher than expected due to higher volumes and lower coking coal costs. This would improve further in Q1 FY17 on the back of strong volumes and higher steel prices. Consolidated operating profit was also boosted by higher contribution from subsidiaries leading to 8.4% yoy increase. The company has guided for strong volume growth of 24% yoy to 15mn tons. This would be achieved on the back of higher domestic demand and import substitution.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Consolidated Revenue 10697.52 10703.8 [0.06]
Consolidated Net Profit 171.25 -9.9 0

Bloomberg estimated the company’s consolidated net profit at Rs. 127.22 crore.

Corporate Action: JSW Steel recommended dividend at the stipulated rate of Re. 1/- (Rupee One only) per share on the 10% Cumulative Redeemable Preference Shares of Rs. 10 each of the Company has been recommended for the year ended March 31, 2016; and

The company has recommended dividend of Rs. 7.50/- per fully paid-up Equity Share of Rs. 10 each has been recommended for the year ended March 31, 2016. The dividend, if declared by the members at the 22nd Annual General Meeting (AGM) of the Company will be credited/dispatched to the members on or before 30 days from the date of Annual General Meeting.

Stock Commentary:

JSW Steel Ltd is currently trading at Rs. 1314.3, down by 5.95 points or 0.45% from its previous closing of Rs. 1320.25 on the BSE.

The scrip opened at Rs. 1321 and has touched a high and low of Rs. 1329 and Rs. 1311.25 respectively. So far 182346(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 31913.08 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 1379 on 29-Apr-2016 and a 52 week low of Rs. 801 on 28-Jul-2015. Last one week high and low of the scrip stood at Rs. 1344 and Rs. 1254 respectively.

The promoters holding in the company stood at 41.48 % while Institutions and Non-Institutions held 37.23 % and 20.51 % respectively.

The stock is currently trading below its 50 DMA.



***Note: This is a NSE Chart

 

Advertisements

  • Get your free IIFL Demat & Trading A/c now...Click here
  • Get IIFL express personal loan disbursal in just 8* hours...Know More
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.