NIFTY 50

JSW Steel Q1 Earnings: Topline likely to de-grow 2%

Updated : July 26, 2019 09:42 AM IST

One of India's largest steel manufacturer JSW Steel is set to report its first-quarter results today. The stock has fallen 40 percent in the last ten months. It is trading at a fresh 52-week low currently.

Here's what the Street is expecting today:

  • Looking at the consolidated numbers, the topline should de-grow around 2 percent, operating profit should be down nearly around 24 percent odd.

  • Margin compression would be nearly around 450-500 basis points.

  • Production numbers have shown a bit of growth of around 2-3 percent.

  • Sales volumes are likely to be more or less flattish or mildly negative.

  • Lower demand, particularly in terms of the auto sector and lack of avenues to go ahead, will impact the topline.

  • Besides, the realisations as well have been quite weak. EBITDA is expected at Rs 9400 to 9500 per tonne.

  • The coated steel business will see some pressure.

  • Profit numbers take a harder hit because of the lower operating profit, higher interest cost as well as higher depreciation cost.
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