Analysts predict that JSW Steel Ltd sales for the June quarter may jump 6 percent year on year, primarily driven by higher volume growth. The company will report its results on July 21.
JSW Steel may report a revenue of Rs 40,354 crore while EBITDA is set to fall 17 percent YoY to Rs 4,913 crore on lower steel realization. Net profit is likely to come in at Rs 611 crore, 75 percent fall YoY.
Few analysts expect the firm to face margin challenges during the first quarter due to unfavorable macro-economic conditions and significant fluctuations in raw material prices. Costs in the past quarter will remained elevated due to high coking coal and iron ore inventory, they added.
"We expect JSTL to report a standalone volume of 4.8 mn tons (+20 percent yoy, -15 percent qoq). We estimate steel realization to decrease by 2.9 percent qoq ( -18 percent yoy) led by price cuts during the quarter. We estimate standalone EBITDA/ton to decline by 28 percent qoq to Rs7,890/ton (-33 percent yoy) led by lower realisations and high-cost coking coal inventory", said Kotak Institutional Equities in a note to investors.
Analysts said they are closely monitoring JSW's export volumes and capex plan. The export volumes can significantly influence the company's overall sales and profitability while capex can offer valuable insights into their investment strategies and future growth prospects, analysts added.
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