Moneycontrol
Last Updated : Jan 31, 2018 08:17 AM IST | Source: CNBC-TV18

JSW Steel Q3 profit seen up 62% t Rs 1,185 cr; strong operating performance seen

The total income could rise 23 percent at Rs 17,225 crore against Rs 14,012.4 crore.

Steel firm, JSW Steel, could post 62 percent jump in its December quarter at Rs 1,185 crore against Rs 730 crore in the previous quarter, according to a poll of analysts by CNBC-TV18. Higher realisations and volumes is likely to have boosted it.

The total income could rise 23 percent at Rs 17,225 crore against Rs 14,012.4 crore.

At the operating level, profit could rise 27 percent at Rs 3,625 crore against Rs 2,866.36 crore. The operating margin could rise to 21 percent against 20.5 percent.

Analysts are expecting better operating profit per tonne to spike QoQ owing to higher flat steel product prices & higher export realizations, increase in realizations will be partially offset by higher iron-ore and coking coal costs and iron ore cost has also inched up in the past Q3FY18 owing to NMDC price hikes.

Key issues to watch for

-Steel price hikes and impact of coking coal

- Domestic steel demand growth

- JSW Steel is of the few companies in India with the ability to expand

- Low specific capex expansion at Dolvi from 5mt to 10mt would drive value

JSW Steel is also investing in optimization projects like blast furnace replacement, slurry pipeline and digitization, which would drive margin in the medium term
First Published on Jan 30, 2018 06:31 pm
Sections
Follow us on
Available On