JSW Steel Ltd - 500228 - Announcement under Regulation 30 (LODR)-Press Release / Media Release
Crude Steel Production at 13.67 Lakh tonnes for May'2110-06-2021
10-06-2021
JSW STEEL LTD. - 500228 - Disclosures under Reg. 31(1) and 31(2) of SEBI (SAST) Regulations, 2011.
The Exchange has received Disclosure under Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 on June 09, 2021 for Siddeshwari Tradex Pvt Ltd09-06-2021
JSW Steel Ltd - 500228 - Announcement under Regulation 30 (LODR)-Updates on Acquisition
Updates on acquisition of PCMD Business from Welspun Corp Limited.08-06-2021
JSW Steel balances capex with aggressive debt reduction
Being an investor in steel companies can’t be easy in the current atmosphere with steel prices rising frequently, and stock prices touching new highs in the past few weeks. Being a cyclical industry, the performance of steel companies is determined by how long the current upward cycle in steel prices and demand can sustain. It also depends on the length of an economic boom. Tata Steel, a large Indian steel player, expects the current commodity ‘super cycle’ to sustain over the next decade, quite different from the tepid demand environment seen in the previous decade. JSW Steel, the highest valued listed Indian steel maker, is using this upward movement in steel prices to pare its debt. The company’s shares are currently trading 5% lower than their lifetime high seen on May 10, 2020. The surge in steel prices is essentially caused by the demand-supply mismatch over the past year due to lockdowns in many parts of the world. When economies opened up, demand spiked as orders were placed, and supply couldn’t catch up. The emphasis on infrastructure spending by many countries, including India, has also led to a surge in iron ore prices, and its alloy steel’s prices. This rise in demand has led to a surge in volumes for steel companies and JSW Steel is no different. The company’s standalone production volumes have been steady over the past three quarters, above the pre-pandemic levels seen in Q4FY20. The lockdowns across India in Q1FY22 dampened domestic demand, but JSW Steel expects to tap the surge in export demand to tide over lockdown. But with its stock trading at record highs, will JSW Steel be able to justify its valuation? Revenues and profits surge on steady volumes The surge in steel prices helped the company post stellar profits over the past four quarters. While revenues dipped during Q1FY21 due to the debilitating impact of the lockdown, as the economy opened up, the company raked in profits. The spike in steel prices led to JSW Steel’s consolidated net profit rising over 22 times YoY to Rs 4,191 crore. The rise in revenues was a little slower at 51% YoY in Q4FY21 to Rs 26,934 crore, while for FY21 as a whole, revenues rose only 8.9% YoY to Rs 79,839 crore as the company couldn’t make up for the lost volumes in Q1FY21. Aggressive debt reduction in the offing Just like Tata Steel, JSW Steel is taking advantage of high prices to reduce its debt levels. Although JSW Steel guided for net debt levels of 3.75 times its consolidated EBITDA, the company has an aggressive internal target of keeping it at 2.75 over FY22. The reduction in debt levels have been helped by the higher realisation of products. Higher realisations helped the company’s standalone earnings before interest, tax and depreciation and amortisation (EBITDA) per tonne rose by 1.25 times YoY in Q4FY21 to Rs 19,756. For FY21, EBITDA per tonne rose by 56% to Rs 12,943. The rise in realisations and margins is generating so much cash that the company’s cash flow from operations grew 47% YoY in FY21 to Rs 18,789 crore. If we remove the capital expenditure (capex) incurred during FY21, then free cash flow comes up to Rs 9,531 crore. In FY20, this number was a negative Rs 35 crore. Steel prices near peak and steep valuations in focus Although steel prices still are elevated in India and globally, they are at their highest levels seen in many years. With China making efforts to ease supply of steel domestically by curbing speculation and increasing export duties on steel products, prices have reached their peak for now. At the standalone level, JSW Steel has guided for an 18.5 million tonne production of crude steel in FY22 with sales of 17.4 million tonnes. In FY21, production fell 6% to 15.08 million tonnes, while sales were down 1% to 14.88 million tonnes. The company has guided for a capex of Rs 18,245 crore for FY22. The cumulative capex plan till FY24 comes up to Rs 47,500 crore, including FY22. This will help the company gain from any surge in demand for steel in the near future. What could trigger a surge in demand is the planned massive infrastructure spending budget that is currently being negotiated by US President Joe Biden in the US Senate. If this happens, then JSW Steel, like Tata Steel, will be smacking their lips at the profits they can make. So will investors in JSW Steel’s shares. At over 22 times TTM PE, JSW Steel’s shares are already in frothy territory, so all future positives are already built into the stock price. Its ability to deliver on the optimism that investors seem to project onto its shares will have to be seen in the coming quarters.08-06-2021
JSW Steel Ltd - 500228 - Disclosures under Reg. 31(1) and 31(2) of SEBI (SAST) Regulations, 2011.
The Exchange has received Disclosure under Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 on June 07, 2021 for Seema Jajodia07-06-2021
JSW Steel Ltd - 500228 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Intimation of Schedule of Analyst/Institutional Investor Meeting.07-06-2021
JSW Steel Ltd - 500228 - Disclosures under Reg. 31(1) and 31(2) of SEBI (SAST) Regulations, 2011.
The Exchange has received Disclosure under Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 on June 07, 2021 for Tarini Jindal Handa07-06-2021
JSW STEEL LTD. - 500228 - Disclosures under Reg. 31(1) and 31(2) of SEBI (SAST) Regulations, 2011.
The Exchange has received Disclosure under Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 on June 03, 2021 for JSW Techno Projects Management Ltd03-06-2021
JSW STEEL LTD. - 500228 - Disclosures under Reg. 31(1) and 31(2) of SEBI (SAST) Regulations, 2011.
The Exchange has received Disclosure under Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 on June 03, 2021 for JTPM Metal Traders Pvt Ltd03-06-2021
Karnataka puts on hold decision to sell land to JSW Steel
Move follows legal tussle with company on other issues27-05-2021