JSW Steel will be reporting its fourth-quarter earnings on Friday and analysts expect the company to witness margin pressure this time.
- In terms of topline, there will be a slender growth around a percent and a half odd but margins will be under some pressure. In terms of the consolidated basis, it could even contract by around 400-500 basis points (bps) whereas the operating profit will come in lower.
- The net profit that the street is working with is around Rs 1,400 crore or thereabouts.
- On sales volume, analysts are expecting around 4.11 million tonnes. On a sequential basis, the company was sitting on some inventory so that as well will be sold and that should sum up this 4.11 million tonne so on a sequential basis it will look very good.
- Realisations are going to be the big drag. On a sequential basis, steel prices have moderated both globally as well as domestically prices and that is what is going to lead to the EBITDA per tonne coming lower by close to around Rs 2,000.