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Entry Price

380.00

Target

400.00

Recommend Date

25-01-2021

Return

5.26 %
BUY

Date : 25-01-2021

Performs well... JSW Steel reported a healthy set of Q3FY21 numbers wherein topline, EBITDA and PAT came in higher than our estimate. On a standalone basis, the company reported sales volume of 3.9 million tonnes (MT) (down 3% YoY, 5% YoY), broadly in line with our estimate of 4.0 MT. Standalone EBITDA/tonne came in at | 14444/tonne, higher than our estimate of | 13000/tonne (| 10136/tonne in Q2FY21, | 5598/tonne in Q3FY20). Consolidated topline came in at |21859 crore (up 13% QoQ, 21% YoY), higher than our estimate of | 20857 crore. Consolidated EBITDA came in at | 5946 crore (up 143% YoY, 35% QoQ), higher than our estimate of | 5269 crore. Consolidated EBITDA margin came in at 27.2% vs. 13.6% in Q3FY20 and 22.9% in Q2FY21 (our estimate of 25.3%). Ensuing consolidated PAT was at | 2669 crore against our estimate of | 2441 crore (consolidated PAT of | 1595 crore in Q2FY21 and | 187 crore in Q3FY20). Capacity utilisation of 91% in Q3FY21 vis-à-vis 86% in Q2FY21 On the back of a healthy demand environment, JSW Steel improved its capacity utilisation to 91% in Q3FY21 compared to 86% in Q2FY21. Crude steel production during the period was at 4.08 MT, standalone saleable steel sales were at 3.90 MT while consolidated saleable steel sales volume was at 3.95 MT. Of this, domestic sales volume was at 3.48 MT, up 16% QoQ, 13% YoY.