- 25 Jul 2022
- ICICIdirect Research
SUBDUED CONSOLIDATED PERFORMANCE FOR Q1FY23, SUBSIDIARIES REPORT A MUTED PERFORMANCE…
JSWSTEEL - 1005 Change: 5.55 (0.56 %)News: For Q1FY23, JSW Steel reported consolidated topline of Rs 38086 crore, up 32% YoY, however down 19% QoQ (our estimate of Rs 38475 crore). Consolidated EBITDA for the quarter stood at Rs 4309 crore (down 58% YoY and 53% QoQ), lower than our estimate of Rs 4716 crore. Consolidated EBITDA margin for the quarter stood at 11.3% as compared to 35.5% in Q1FY22 and 19.6% in Q4FY22 (our estimate of 12.3%). The ensuing consolidated PAT for Q1FY23 stood at Rs 839 crore, down 86% YoY and 75% QoQ, lower than our estimate of Rs 941 crore.
Views: JSW Steel reported subdued consolidated performance for Q1FY23, wherein standalone operations operational performance came in broadly in line with our estimate, however muted performance from the subsidiaries led to the miss at the consolidated EBITDA and PAT level. For Q1FY23, JSW Steel reported quarterly saleable steel sales volumes of 4.03 Million tonnes (MT), up 12% YoY, however down 21% QoQ, broadly in line with our estimate of 4.1 MT. For the quarter, JSW Steel standalone operations reported EBITDA/tonne of Rs 8318/tonne, down 68% YoY and 38% QoQ, broadly in line with estimate of Rs 8250/tonne. Standalone EBITDA for the quarter stood at Rs 3352 core, down 65% QoQ and 51% YoY, (our estimate of Rs 3341 crore). However, subsidiaries performance came in lower than our estimate, and as a result of which consolidated reported EBITDA came in lower than our estimate. Consolidated EBITDA for the quarter stood at Rs 4309 crore (down 58% YoY and 53% QoQ), lower than our estimate of Rs 4716 crore. Hence because of miss at consolidated EBITDA level, the ensuing consolidated PAT also came in lower than our estimate.
Impact: Negative.