Q1FY24 Preview: JSW Steel: Revenue seen at Rs. 390,792 million, PAT at Rs. 7,062 million

18 Jul 2023 , 12:59 PM

Result date: 21^st July, 2023

Recommendation: Reduce

Target price: Rs. 697

(Source: IIFL Research)

JSW Steel could report decline in standalone realization per ton on a sequential basis amid lower spot prices. These could be partly offset by higher automotive contract prices. Volumes too could remain weak and witness decline sequentially. Consequently, the company’s revenue could decline ~17% on a sequential basis.

Increasing prices of coking coal which is a key raw material for the company could impact its EBITDA even though prices of iron ore are likely to remain flat. JSW Steel could witness flattish sequential performance from its overseas subsidiaries.

The company’s Profit After Tax (PAT) could fall 28.7% as compared to the March 2023 quarter.

Rs. Million	June 2023 estimates	YoY change	QoQ change
Revenue	390,792	2.53%	(16.73)%
EBITDA	50,546	6.73%	(36.27)%
Profit After Tax (Rs. mn)	7,062	(15.87)%	(28.73)%

Source: Brokerage Reports