JSW Steel Q2 standalone PAT seen down 54.7% at Rs 202 cr

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JSW Steel Q2 standalone PAT seen down 54.7% at Rs 202 cr

JSW Steel is expected to report a fall of 54.7% year-on-year in its standalone profit after tax of Rs 202 crore for the quarter ended September FY12 as against Rs 445.44 crore in the corresponding quarter of last fiscal, according to CNBC-TV18 estimates.

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JSW Steel is expected to report a fall of 54.7% year-on-year in its standalone profit after tax of Rs 202 crore for the quarter ended September FY12 as against Rs 445.44 crore in the corresponding quarter of last fiscal, according to CNBC-TV18 estimates.
 
The company has disclosed on October 21, 2011 that only un-audited standalone financial results will be out instead of the consolidated. Hence ISPAT, its US coal mines, US plate and pipe mill operations and also Chilean iron ore mines will not be included.

Net sales are seen going up by 21.7% to Rs 6,955 crore from Rs 5,712.8 crore year-on-year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to go down by 9% to Rs 845 crore from Rs 929 crore during the same period. EBITDA margin is expected to be at 12.1% in Q2FY12 as against 16.3% in Q2FY11.

On quarter-on-quarter basis, profit after tax is likely to fall 65.1% and sales are seen going down by 1.6%.

Factors in focus:

Product mix will be crucial as prices of long product prices have increased 5-6% QoQ but their volumes in flats form a higher part of their product mix

Costs are likely to increase owing to higher coking coal costs

EBITDA/tonne likely to decline substantially from a healthy USD 181/tonne in 1QFY12

PAT also likely to be impacted by forex losses on debt because of rupee depreciation

Realizations:

Realizations will come in higher on a year-on-year basis but marginally lower sequentially

Average HRC price declined 0.5% QoQ in the domestic market while long product prices have increased 5-6% QoQ