JSW Steel Q3 net seen down 22% at Rs 297.6 cr

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JSW Steel Q3 net seen down 22% at Rs 297.6 cr

JSW Steel is going to declare only standalone financial results instead of consolidated. Hence ISPAT, its US coal mines, US plate and pipe mill operations and also Chilean iron ore mines will not be included in third quarter numbers.

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JSW Steel is going to declare only standalone financial results instead of consolidated. Hence ISPAT, its US coal mines, US plate and pipe mill operations and also Chilean iron ore mines will not be included in third quarter numbers.

The company is likely to report a profit after tax of Rs 297.6 crore in third quarter of FY12, degrowth of 22% as compared to Rs 382.3 crore in the corresponding quarter of last fiscal. (Need to watch out for the treatment of notional forex losses on FCCB. In Q2FY12, it reported notional loss of Rs 512 crore)

Revenues are seen going up by 40% to Rs 8,096 crore from Rs 5,771.4 crore year-on-year. EBITDA is expected to move up 25% to Rs 1,205.1 crore from Rs 964.1 crore during the same period.

EBITDA is likely to grew at 14.9% versus 16.7% (contraction of margins may be due to high price of iron ore from e-auction and also sourcing from other states) YoY.    

On quarter-on-quarter basis, revenues are seen going up by 6.2% and PAT is likely to be more than doubled from Rs 127.12 crore.

Key factors:

Production improves with ore availability; but margins will remain under pressure

Revenue will be boasted on a YoY basis owing to higher steel prices and capacity additions coming on stream

Revenue likely to come in positive even on a QoQ basis due to higher marginally higher steel prices

E-auction update: Had procured 7mt of iron ore from the e-auctions (requires 1.5 mt a month to run at full capacity)

Iron ore procured will be adequate for production till March, 2012

Volumes:

Volume are expected to increase due to commissioning of 3.2 mtpa expansion at its Vijaynagar plant

Sales volume for Q3FY12 is expected to be around 1.9 MT which would be flat QoQ and will be roughly a 19% increase on a YoY basis