JSW Steel: Cost pressure hurts
Investors need to watch out for raw material prices, demand sustainability for JSW Steel
October 22, 2021 / 10:11 AM IST
JSW Steel | The company acquired 80 percent of the issued and paid-up equity share capital and zero coupon CCDS of Neotrex Steel.
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
The results for the quarter ended September 2021 for JSW Steel (JSW; CMP: Rs 673; Market Capitalisation: Rs 1,62,788 crore) are in line with expectations.
Higher raw material prices impacted margins in the standalone business while performance from subsidiaries, joint ventures and associates partly helped in putting up a better show.
In October, the brownfield integrated steel plant at Dolvi commenced operations and ramped up capacity from 5 MTPA to 10 MTPA.
September quarter performance
Steel production was almost flattish, quarter on...