Q2FY23 Preview: JSW Steel: Revenue seen at Rs386,766 million, Net loss at Rs1,120 million

20 Oct 2022 , 09:34 AM

Result date: 21^st October, 2022
Recommendation: Sell
Target price: Rs586
(Source: IIFL Research)

It is likely to be a soft quarter for JSW Steel. The company’s consolidated revenue could increase 19% over the year-ago quarter even as higher steel volume is partly offset by lower realizations.

JSW Steel’s EBITDA is likely to witness a sharp decline on the back of higher input costs and lower steel realizations. Reduced iron ore prices, though, is unlikely to provide significant relief.

The company could post a net loss after tax during the quarter, reflecting the double whammy of falling realizations and surging raw material costs.

Important management insights to watch out for:

• Volume guidance for FY23
• Update on capex

Rs. Million	September 2022 estimates	YoY change	QoQ change
Revenue	386,766	19%	2%
EBITDA	27,719	(73)%	(36)%
Profit After Tax	(1,120)	(102)%	(113)%

Source: Brokerage reports