JSW Steel Q1 Results Review - Standalone Ebitda/Tonne InIine; Expansion On Track: Centrum

Centrum Report

JSW Steel Ltd. reported lower-than-expected consol Ebitda of Rs 55.1 billion (Our estimate: Rs 59 billion), down 10% QoQ. Standalone numbers came in-line, Ebitda of Rs 42.7 billion, down 3.7% QoQ (Our estimate: Rs 41.7 billion).

Export stood at 0.59 million tonne decrease QoQ significantly contributing 10% of sale in Q1 FY25 versus 20% in Q4 FY24. Coking coal cost decreased as guided by $ 23. Overall Ebitda/tonne came in-line at Rs 8,399 (Our estimate: Rs 8,355/tonne).

For Q2 FY25, coking coal cost is expected to decline by $ 23- 28/tonne. JSW is on verge of commissioning 5 millions of tonnes per annum and 1.5 millions of tonnes per annum capacity expansion at Vijaynagar and Bhushan Power and Steel Ltd. and expect to ramp up by December 2024.

We lower our realisation estimate by 3% leading to 16% fall in FY25E Ebitda. Hence we change our rating to Reduce (Earlier: 'Add') and our target price to Rs 895 (Earlier: Rs 909), valuing at seven times FY26E enterprise /Ebitda.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.