JSW Steel Q3FY22 Preview: Revenue seen at Rs367,970 million, PAT at Rs46,679 million

21 Jan 2022 , 07:27 AM

Result date: 21st January, 2022
Recommendation: Add
Target price: Rs705
(Source: IIFL Research)

JSW Steel’s combined crude steel production at the group level stood at 5.35 million tonnes during the quarter, registering a YoY growth of 28%. Its standalone crude steel production grew 8% YoY to 4.41 million tonnes. During the quarter, company achieved a healthy capacity utilization of 94% on a standalone basis. Healthy volume growth will be reflected in its strong revenue growth for Q3.

Higher prices of coking call, costs associated with Dolvi plant though are likely to impact operating and net profit margins of the company on a sequential basis.

Important management insights to watch out for:
– Demand trends
– Update on expansion plans
– Margin levers for the future

Rs. Million	December 2021 estimates	YoY change	QoQ change
Revenue	3,67,970	71.3%	15.3%
EBITDA	90,715	52.6%	(12.9%)
PAT	46,679	74.1%	(34.9%)

Source: Bloomberg consensus, BSE