Shares of JSW Steel rose over 1 percent on April 11 as the steel maker logged its highest ever quarterly consolidated crude steel production at 6.58 million tonnes for Q4 FY23, registering a growth of 13 percent year-on-year (YoY) and 7 percent quarter-on-quarter (QoQ).
“This was driven by improved capacity utilisation at the Indian operations (capacity utilisation of 96 percent in Q4 FY23 versus 91 percent in Q3 FY23),” the company said in an exchange filing.
Consolidated crude steel production for FY23 was the highest ever at 24.15 Mnt, up 24 percent YoY. This was against the management guidance of 25.0 Mnt.
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Morgan Stanley pointed out that the company has achieved its guidance for consolidated production of India operations.
At 10:26 am, shares of JSW Steel were trading 1 percent higher at Rs 695.80 on the BSE.
Morgan Stanley has an ‘underweight’ recommendation on shares of the steel manufacturer with a target price of Rs 545 on the stock.
The management expected to miss production guidance slightly. The company had said in its latest investor presentation that the withdrawal of export duties in November 2022 and increase in global prices will aid exports in Q4 of FY23. Plus, improving domestic prices would offset rising iron ore costs and support margins for Q4. Meanwhile, the steelmaker also believes that there is potential for a reduction in working capital in Q4.
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