JSW Steel shares fall over 2% after Q4 result disappoints
The fall in share price came a day after the steel major reported a drop in consolidated net profit to Rs 1,299 crore for the quarter ended March 2024. It was Rs 3,664 crore a year ago. Revenue from operations in the reporting quarter, too, took a beating, though marginally, to Rs 46,269 crore.
of dropped nearly 2.5% on the in Saturday’s special trading session to the day’s low of Rs 885.50 after reporting a 64% YoY in the fourth quarter of FY24.The steel major on Friday reported a drop in consolidated net to Rs 1,299 crore for the quarter ended March 2024. The same stood at Rs 3,664 crore a year ago, while from operations in the reporting quarter declined marginally to Rs 46,269 crore.
“We expect Q1FY25E EBITDA/t to improve to INR9,500–10,000/t amid lower coking coal prices. Besides, the company is set to expand capacity by 6.5mtpa by Jul-24. It also announced fresh expansion of 5mtpa,” stated domestic brokerage firm while raising the target price for the stock to Rs 951.
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JSW Steel posted an in-line Q4FY24 of Rs 6,120 crore as per Nuvama’s expectation, down 15% QoQ, due to lower steel prices (down 3% QoQ) and higher coking coal cost (up USD22/t QoQ) partially offset by improved volume (up 9.4% QoQ).
Standalone EBITDA/t fell Rs 3,307/t QoQ to Rs 7,807.
“JSW is on the verge of commissioning 6.5mtpa capacity (5mtpa at Vijaynagar by Jul-24, 1.5mtpa at Odisha in Q1FY25), taking its total capacity to 34.7mtpa in India. Furthermore, 2mtpa will be commissioned by end-FY25, taking the capacity to 36.7mtpa. Management’s guidance of incremental 2mt sales volume in FY25 is lower than what we expected. We believe the major benefits of this to come in FY26,” added Ashish Kejriwal, analyst at Nuvama.
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Source: Stocks-Markets-Economic Times
