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JSW Steel Q2 results preview: Topline growth seen at around 23%

Updated : October 25, 2018 11:30:25 IST

Billionaire Sajjan Jindal founded JSW Steel will report its second-quarter earnings on Thursday and analysts' expect stellar numbers this time around.

Lets take a look at the key expectations:
  • JSW Steel has been a big outperformer but in the last month or so, the stock has corrected close to around 18 percent from the peak. The street is getting a little cautious as JSW Steel being too ambitious in terms of organic as well as inorganic growth.
  • Q2 numbers are expected to be very good. Topline growth of around 23 percent, margins will expand by around 300-400 basis points and the profit number should jump up by nearly 100 percent or more than double on the low base.
  • Production numbers have come in higher by around 6 percent, sales volumes are expected to be around 4 million tonnes, so small growth in terms of volumes, bulk of it would be coming in because of higher realisations.
  • Domestic steel prices have been strong and export steel prices have gone up because global steel prices have gone up also because a weaker rupee helps them on that front.
  • Domestic EBITDA per tonne is expected to be around Rs 11,200, which will be a big increase on a year-on-year (Y-o-Y) basis but on a sequential basis, it will be a downtick of around Rs 1,300 or thereabouts.


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