JSW Steel Results: JSW Q2 Results (2021-22) News, Earnings Release & More

JSW Steel Results: JSW Q2 Results (2021-22) News, Earnings Release & More

Last updated: 22 Oct, 2021 | 09:52 am

JSW Steel Results: JSW Q2 Results (2021-22) News, Earnings Release & More

Increase in revenue: JSW Steel has reported consolidated revenue of Rs 32,503 crore in the Jul-Sep 21 period, up by 12.5% from last quarter. Analysts had earlier estimated revenue of Rs 32,108.6 crore. The increase in revenue was led by product and market mix. For Q2FY21, the company's revenue was Rs 19,264 crore.

Profit beat estimates: JSW Steel reported a net profit of Rs 7,170 crore, an increase of 21.4% quarter-on-quarter. Analysts has earlier predicted a net profit of Rs 5,744.2 crore. The profit was aided by favourable realisations. 

Increase in Operating Profit: The company's operating profit increased to Rs 10,417 crore, up by 1.4% sequentially. The analyst has earlier estimated operating profits of Rs 10,452 crore. The increase in operating profit was on the back of reliance on exports and stable volumes and higher realizations. 

EBITDA Margin - The EBITDA margin contracted from 35.5% to 32% Q-o-Q. The EBITDA margin was lower compared to the previous quarter because of the increase in raw material prices of coking coal, iron ore, and other key inputs like natural gas, power, and ferroalloys.

EBITDA of Overseas units - The company's Ohio unit reported operating profit of $48.3 million, US plate and pipe mill reported operating profit of $13.16 million, and Italy arm reported EBITDA profit at 6.1 million Euros.

Sales Update - The company sales increased by 4.8% to 3.79 million tonnes sequentially. The domestic sales were up by 4% Q-o-Q and exports increased by 22%. The domestic automotive sales rose by 9% in the quarter ending September over the quarter ending June.

Other updates - JSW Steel spent Rs 3,639 crore on capital expenditure as against the total planned Capex spending of Rs 18,240 crore for the current financial year. The Net Debt to Equity ratio stood at 0.92X for Q2FY22.

The company expects slowing demand from China but sees growth for the rest of the world. The demand in India is expected to increase led by the infrastructure and construction sectors. 

The company plans to absorb additional cost pressure of $100 a ton in Q3FY22. The Iron Ore prices are currently available at a 10-15% discount and are expected to head further south due to reduced demand from China.

JSW Steel results: review

JSW Steel has reported a decent set of numbers for the Jul-Sep 21 period, aided by strong revenue growth. However, rising input costs has weighed on the margins as well as the operating performance. Going forward, there are increased risks to raw material prices due to higher cooking coal prices in the the second half. 

JSW Steel earnings: Brokerage outlook

Global brokerage firm Credit Suisse has maintained an ‘underperform’ rating on JSW Steel with a target price of Rs 550. The research house noted that while JSW Steel’s standalone earnings missed estimates, higher earnings globally helped the company to offset poor domestic performance. 

JP Morgan has maintained a ‘Neutral’ rating on the stock with a target price of Rs 730. The research firm expects steel price hikes in November and December and also lower iron ore costs in the second half of the year. JP Morgan noted that the margins for Steel companies have peaked and hence there are upside risks to estimates.

We are a SEBI registered investement advisor
Mutual Funds watchlist
aditya birla sun life flexi cap fund growth direct plan|ABSL low duration fund direct growth|axis bluechip fund direct growth|axis capital builder fund series 4|axis balanced advantage fund direct growth|axis equity saver fund direct growth|axis multicap fund direct growth|axis global innovation fund of fund direct growth|axis long term equity fund growth NAV|axis quant fund direct growth|axis small cap fund direct growth|axis value fund direct growth|baroda dynamic equity fund direct growth|BOI AXA bluechip fund|canara robeco flexi cap fund direct growth|canara robeco small cap fund direct growth|canara robeco value fund direct growth|DSP quant fund direct|franklin india smaller companies fund direct growth|HDFC arbitrage fund direct growth|HDFC balanced advantage fund direct growth|HDFC developed world index fund NAV|HDFC flexi cap fund direct growth|HDFC housing opportunities fund direct growth|HDFC hybrid equity fund direct growth|HDFC nifty 50 index fund|HDFC index fund sensex plan|HDFC mid cap opportunities direct plan growth|HDFC multi asset fund direct growth|HDFC small cap fund direct growth|HDFC top 100 fund direct growth|HSBC midcap fund direct growth|ICICI prudential balanced advantage fund|ICICI bluechip fund direct growth NAV|ICICI prudential commodities fund direct plan growth|ICICI nasdaq 100 fund direct growth|ICICI nifty next 50 index fund direct growth|ICICI small cap fund direct growth|ICICI prudential technology direct plan growth calculator|ICICI ultra short term fund direct growth|IDBI india top 100 equity fund direct growth|IDBI small cap fund direct growth|idfc us equity fund of fund direct growth|kotak short term fund direct growth|kotak emerging equity fund direct growth|kotak multicap fund direct growth|kotak global innovation fund of fund NAV|kotak gold fund direct growth|kotak savings fund direct growth|kotak small cap fund direct growth|L&T emerging businesses fund direct growth|mirae asset large cap fund direct growth|mirae asset midcap fund|motilal oswal nasdaq 100 fund of fund|navi nifty 50 index fund direct growth|nippon india banking and financial services fund direct growth|nippon banking fund direct|nippon india flexi cap fund NAV|nippon india large cap fund direct growth|nippon india pharma fund direct growth|nippon india small cap fund direct growth|PGIM small cap fund direct growth|quant flexi cap fund direct growth|quant infrastructure fund direct growth|quant tax plan direct plan growth|SBI bluechip fund direct growth|SBI corporate bond fund direct growth|SBI equity minimum variance fund direct growth|SBI flexi cap fund|SBI magnum children's benefit fund investment direct plan|SBI nifty index fund direct growth|SBI small cap fund direct growth|SBI technology opportunities fund direct growth|tata banking and financial services fund direct plan growth|tata business cycle fund|tata technology fund direct growth|tata equity pe fund direct growth|tata ethical fund direct growth NAV|tata focused fund direct growth|tata index fund nifty direct plan|tata india tax savings fund direct plan growth|UTI focused equity fund direct growth|UTI nifty index fund direct growth NAV|UTI nifty 50 index fund direct growth