Q2FY24 Preview: JSW Steel: Revenue seen at Rs. 493,559 million, PAT at Rs. 23,066 million

19 Oct 2023 , 10:33 AM

Result date: October 20, 2023

Recommendation: Reduce 

Target price: Rs. 766

JSW Steel could report strong set of numbers for the September 2023 quarter. Volumes could rise by high single digits as compared to the year-ago quarter, even as realisations are expected to witness mid-single digits decline.

Higher sales volumes and lower operating costs are likely to drive margins during the quarter. Lower input costs is another key positive.

The Indian business of JSW Steel is likely to do well, even as performance of subsidiaries could be subdued.

Company could report Profit After Tax (PAT) could in the September 2023 quarter as against a loss posted in the year-ago quarter.

Important management insights to watch out for:

• Outlook on sales realizations
• Expected trajectory of coking coal costs

Rs. Million	September 2023 estimates	YoY change
Revenue	493,559	18.1%
EBITDA	73,096	317.2%
PAT	23,066	LTP

Source: IIFL Research

LTP stands for Loss to Profit