JSW Steel (JSTL) reported Q4FY19 below our expectations due to lower than expected realisations largely impacted by poor product mix and high share of exports offset by higher volumes and low fuel costs.
JSW Steel Limited is engaged in the business of production and distribution of iron and steel products. Its segments include Steel; Power (used mainly for captive consumption), and Others, which includes cement, mining and construction activities.
Exports continued to remain a cause of concern for the Indian steel sector. However, we believe that firm domestic demand and positive outlook on global steel prices would offset the shrink in export volumes.
We visited JSW Steel’s (JSTL) Vijaynagar steel plant on 11-12th December 2018. This plant is the largest single location steel producing facility in India, accounting for 12mtpa of JSTL’s overall capacity of 18mtpa.
JSW Steel (JSTL) reported Q3FY18 earnings above our estimates on the back of higher than expected realisations. EBITDA margins rose to 6‐quarter high level of Rs 9000/t (PLe:Rs8,330), up 21% QoQ/17% YoY.
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