- 30 May 2022
- ICICIdirect Research
JSW Steel reports steady operational performance; subsidiaries surprise positivelyJSWSTEEL - 664 Change: 6.20 (0.94 %)
News: For Q4FY22, JSW Steel reported consolidated topline of Rs 46895 crore, up 74% YoY and 23% QoQ, broadly in line with our estimate of Rs45325 crore. Consolidated EBITDA for the quarter stood at Rs 9184 crore (up 9% YoY and 1% QoQ), higher than our estimate of Rs 8610 crore. Consolidated EBITDA margin for the quarter stood at 19.6% as compared to 31.3% in Q4FY21 and 24% in Q3FY22 (our estimate of 19.0%). Ensuing consolidated PAT for Q4FY22 stood at Rs 3343 crore, down 20% YoY and 26% QoQ, lower than our estimate of Rs 4242 crore.
Views: JSW Steel reported steady operational performance for Q4FY22, wherein consolidated EBITDA came in higher than our estimate. However, reported consolidated PAT came in below our estimate on account of exceptional expense to the tune of Rs 741 crore. Higher than expected standalone operations sales volume and better than expected performance from the subsidiaries aided JSW Steel’s consolidated performance during the quarter. For Q4FY21, JSW Steel reported quarterly saleable steel sales volumes of 5.11 Million tonnes (MT), up 26% YoY and 28% QoQ, higher than our estimate of 4.90 MT. For the quarter, JSW Steel standalone operations reported EBITDA/tonne of Rs 13517/tonne, down 32% YoY and 20% QoQ, marginally lower than our EBITDA/tonne estimate of Rs14000/tonne. Standalone EBITDA for the quarter stood at Rs 6907 core, up 2% QoQ however down 14% YoY, broadly in line our estimate of Rs 6860 crore. However, subsidiaries performance came in better than our estimate, and as a result of which consolidated reported EBITDA came in higher than our estimate. Consolidated EBITDA for the quarter stood at Rs 9184 crore (up 9% YoY and 1% QoQ), higher than our estimate of Rs 8610 crore.