InCred Equities - JSW Steel

	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Revenue (Rsm)	1,659,600	1,714,617	1,863,715	2,012,812
Operating EBITDA (Rsm)	185,470	232,259	269,391	308,913
Net Profit (Rsm)	41,669	69,278	93,082	111,018
Core EPS (Rs)	11.8	18.9	25.9	25.9
Core EPS Growth	(83.5%)	60.3%	37.3%
FD Core P/E (x)	68.67	41.30	30.74	25.77
DPS (Rs)	6.5	6.5	6.5	6.5
Dividend Yield	0.69%	0.69%	0.69%
EV/EBITDA (x)	18.63	15.37	13.66	12.20
P/FCFE (x)	16.19	(36.44)	22.04	17.52
Net Gearing	86.7%	96.5%	101.3%	100.7%
P/BV (x)	4.36	4.04	3.66	3.27
ROE	5.6%	10.2%	12.5%	13.4%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Total Net Revenues	1,659,600	1,714,617	1,863,715	2,012,812
Gross Profit	726,260	781,669	849,641	917,612
Operating EBITDA	185,470	232,259	269,391	308,913
Depreciation And Amortisation	(74,740)	(79,161)	(81,397)	(84,192)
Operating EBIT	110,730	153,098	187,994	224,721
Financial Income/(Expense)	(69,020)	(64,943)	(69,245)	(81,995)
Pretax Income/(Loss) from Assoc.	(1,370)	(1,370)	(1,370)	(1,370)
Non-Operating Income/(Expense)	10,300	5,921	7,152	7,152
Profit Before Tax (pre-EI)	50,640	92,707	124,530	148,508
Exceptional Items	5,910
Pre-tax Profit	56,550	92,707	124,530	148,508
Taxation	(15,160)	(23,707)	(31,727)	(37,769)
Exceptional Income - post-tax
Profit After Tax	41,390	68,999	92,803	110,739
Minority Interests
Preferred Dividends	279	279	279	279
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	41,669	69,278	93,082	111,018
Recurring Net Profit	37,343	69,278	93,082	111,018
Fully Diluted Recurring Net Profit	37,343	69,278	93,082	111,018

(Rs mn)	Mar-23A	Mar-24F	Mar-25F	Mar-26F
EBITDA	185,470	232,259	269,391	308,913
Cash Flow from Invt. & Assoc.
Change In Working Capital	31,050	(51,903)	(5,307)	(5,307)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	10,720	(4,312)	302	323
Other Operating Cashflow	78,920	70,864	76,397	89,147
Net Interest (Paid)/Received	(66,550)	(64,943)	(69,245)	(81,995)
Tax Paid	(6,380)	(23,707)	(31,727)	(37,769)
Cashflow From Operations	233,230	158,258	239,810	273,311
Capex	(147,490)	(188,000)	(260,000)	(260,000)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	40,380
Cash Flow From Investing	(107,110)	(188,000)	(260,000)	(260,000)
Debt Raised/(repaid)	50,600	(48,770)	150,000	150,000
Proceeds From Issue Of Shares	590
Shares Repurchased
Dividends Paid	(41,940)	(19,912)	(19,912)	(19,912)
Preferred Dividends
Other Financing Cashflow	(69,020)	(64,943)	(69,245)	(81,995)
Cash Flow From Financing	(59,770)	(133,625)	60,843	48,093
Total Cash Generated	66,350	(163,367)	40,653	61,404
Free Cashflow To Equity	176,720	(78,512)	129,810	163,311
Free Cashflow To Firm	192,670	35,201	49,055	95,306

(Rs mn)	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Total Cash And Equivalents	207,190	43,833	84,486	145,889
Total Debtors	71,340	72,563	77,870	83,178
Inventories	331,350	375,807	408,485	441,164
Total Other Current Assets	71,620	71,620	71,620	71,620
Total Current Assets	681,500	563,823	642,461	741,851
Fixed Assets	1,264,900	1,373,739	1,552,343	1,728,151
Total Investments	48,010	48,010	48,010	48,010
Intangible Assets	1,280	1,280	1,280	1,280
Total Other Non-Current Assets	115,090	115,090	115,090	115,090
Total Non-current Assets	1,429,280	1,538,119	1,716,723	1,892,531
Short-term Debt	168,760	19,990	19,990	19,990
Current Portion of Long-Term Debt
Total Creditors	382,030	375,807	408,485	441,164
Other Current Liabilities	148,840	148,840	148,840	148,840
Total Current Liabilities	699,630	544,637	577,315	609,994
Total Long-term Debt	619,660	719,660	869,660	1,019,660
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	27,790	27,790	27,790	27,790
Total Non-current Liabilities	647,450	747,450	897,450	1,047,450
Total Provisions	93,310	88,998	89,300	89,622
Total Liabilities	1,440,390	1,381,085	1,564,065	1,747,067
Shareholders Equity	656,960	707,417	781,679	873,875
Minority Interests	13,440	13,440	13,440	13,440
Total Equity	670,400	720,857	795,119	887,315

	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Revenue Growth	13.4%	3.3%	8.7%	8.0%
Operating EBITDA Growth	(52.5%)	25.2%	16.0%	14.7%
Operating EBITDA Margin	11.2%	13.5%	14.5%	15.3%
Net Cash Per Share (Rs)	(192.43)	(230.37)	(266.57)	(295.90)
BVPS (Rs)	217.50	234.21	258.79	289.32
Gross Interest Cover	1.60	2.36	2.71	2.74
Effective Tax Rate	26.8%	25.6%	25.5%	25.4%
Net Dividend Payout Ratio	54.9%	28.3%	21.1%
Accounts Receivables Days	16.16	15.32	14.73	14.60
Inventory Days	130.86	138.33	141.15	141.58
Accounts Payables Days	135.10	148.25	141.15	141.58
ROIC (%)	6.2%	10.3%	11.3%	12.1%
ROCE (%)	7.4%	9.9%	11.4%	11.9%
Return On Average Assets	4.2%	6.4%	7.3%	7.7%

(91) 22 4161 1562 satish.kumar@incredresearch.com

(91) 22 4161 1598 abbas.punjani@incredresearch.com

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Market Data

Source: Bloomberg