JSW Steel Q2 preview: EBITDA per tonne to contract on sequential basis

Sajjan Jindal-led JSW Steel on Thursday (October 21) will report its second-quarter earnings. The Street expects growth in topline, operating profit to surge, margins to improve close to around 32 percent for the consolidated business. Also, net profit numbers will look very strong.

The factors that are contributing here are - realizations have rocketed in the last year on a year-on-year basis and they look very, very good. Volume boost will come in because of Bhushan Power as well as the overseas acquisition that has done pretty well.

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Coming to JSW Ispat Steel, it has ramped up production and that will contribute as well. The overseas operations are doing quite well, particularly in the US as prices there have skyrocketed.

The EBITDA (earnings before interest, taxes, depreciation, and amortization) per tonne for JSW Steel on a sequential basis, there will be a bit of a dip of around Rs 2,000-3,000 odd as prices normally weaken in the monsoon and also input costs have spiked up.