Hand of businesswoman point the goal chart.
JSTL’s Q4 EBITDA increased 42 percent quarter over quarter (+184 percent year over year), or 13 percent higher than JEFe, thanks to higher-than-expected realisations. Ebitda/t increased by 37% year on year to Rs 19.8K. Despite a recent correction, Asian steel prices remain strong; Indian spot HRC prices are 20% higher than the Q4 average and remain cheaper than imports. We expect JSTL’s margins to rise further in June-Q, but we expect them to level off in the second half of FY22. With a revised PT of Rs 820, we raise FY22-23e EPS by 44-68 percent and keep our Buy rating.
JSTL had a stellar fourth quarter, with Ebitda and net profit up 42-57 percent q-o-q (both 3x y-o-y) and 12-13 percent higher than JEFe. Standalone sales volumes increased by 4% q-o-q, while realisations increased by Rs 8.4K/t (+18%), owing to higher steel prices.
Due to higher iron ore prices, raw material costs increased q-o-q; nonetheless, Ebitda/t increased 37 percent q-o-q to Rs 19.8K, a decade high. The combined performance of subsidiaries improved year over year. Due to the BPSL acquisition, net debt increased by 2% year over year. JSTL’s Ebitda increased by 68 percent year over year in FY21, while net profit increased by 3 times.
Steel prices are strong: Domestic steel prices in China are down 15% from their mid-May peak, but are still up 27% year-to-date at $887/t. In the short term, the continuing Covid wave is impacting Indian steel demand, but JSTL anticipates exports to compensate for any shortage.
JSTL outlined an aggressive capex strategy with a total investment of Rs 475 billion over the next three years. This includes a Rs 150 billion expansion at Vijaynagar to increase capacity to 5 million tonnes per annum, suggesting a capacity cost of $400 per tonne. This, together with the previously planned 1 million tonnes per annum development at Vijaynagar, would bring JSTL’s total steel capacity to 33 million tonnes per annum by FY25.
ALSO READ : Titan Company’s stock has risen 6% in 2 days, approaching a new high
Hello, my name is Anuj Boruah. I am quite interested in writing about current events in business, finance, and the economy. I work as a newswriter at Reviewminute.
HR Beat Production has unveiled its latest Haryanvi hit, "Bahu Chaudhariya Ki," featuring artists Aman…
Apple's highly anticipated iPhone 16 series is set to launch on Friday, with the flagship…
Vipin Reshammiya, father of Himesh Reshammiya, has passed away at the age of 87. He…
On its eighth day at the box office, "Stree 2" has maintained its impressive momentum,…
On the fourth day since its release, the movie "Crack" managed to accumulate a mere…
Rakul Preet Singh Shines in Pink, Golden, and Saffron Lehenga; Jackky Bhagnani Dons Pink and…
This website uses cookies.