InCred Equities - JSW Steel

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	1,750,060	1,666,258	1,744,850	1,820,545
Operating EBITDA (Rsm)	282,360	223,060	256,465	296,600
Net Profit (Rsm)	90,009	42,701	60,694	83,723
Core EPS (Rs)	18.9	25.9	25.9	25.9
Core EPS Growth	60.3%	37.3%
FD Core P/E (x)	33.72	71.08	50.01	36.25
DPS (Rs)	6.5	6.5	6.5	6.5
Dividend Yield	0.65%	0.65%	0.65%	0.65%
EV/EBITDA (x)	13.42	16.85	14.46	12.24
P/FCFE (x)	154.07	16.19	14.32	12.41
Net Gearing	91.8%	85.4%	75.4%	61.7%
P/BV (x)	3.91	3.79	3.60	3.34
ROE	12.0%	5.4%	7.4%	9.6%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Net Revenues	1,750,060	1,666,258	1,744,850	1,820,545
Gross Profit	833,390	790,621	842,944	909,869
Operating EBITDA	282,360	223,060	256,465	296,600
Depreciation And Amortisation	(81,720)	(88,258)	(92,677)	(97,096)
Operating EBIT	200,640	134,803	163,788	199,504
Financial Income/(Expense)	(81,050)	(86,834)	(91,763)	(96,693)
Pretax Income/(Loss) from Assoc.	(1,720)	(1,720)	(1,720)	(1,720)
Non-Operating Income/(Expense)	10,040	11,044	11,044	11,044
Profit Before Tax (pre-EI)	127,910	57,293	81,349	112,135
Exceptional Items	5,890
Pre-tax Profit	133,800	57,293	81,349	112,135
Taxation	(44,070)	(14,871)	(20,933)	(28,692)
Exceptional Income - post-tax
Profit After Tax	89,730	42,422	60,415	83,444
Minority Interests
Preferred Dividends	279	279	279	279
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	90,009	42,701	60,694	83,723
Recurring Net Profit	86,059	42,701	60,694	83,723
Fully Diluted Recurring Net Profit	86,059	42,701	60,694	83,723

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	282,360	223,060	256,465	296,600
Cash Flow from Invt. & Assoc.
Change In Working Capital	(136,150)	2,420	(5,001)	(4,817)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	(11,310)	(4,231)	346	371
Other Operating Cashflow	94,180	97,878	102,807	107,737
Net Interest (Paid)/Received	(80,510)	(86,834)	(91,763)	(96,693)
Tax Paid	(27,790)	(14,871)	(20,933)	(28,692)
Cashflow From Operations	120,780	217,422	241,921	274,506
Capex	(155,470)	(80,000)	(80,000)	(80,000)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	9,090
Cash Flow From Investing	(146,380)	(80,000)	(80,000)	(80,000)
Debt Raised/(repaid)	45,300	50,000	50,000	50,000
Proceeds From Issue Of Shares	60
Shares Repurchased
Dividends Paid	(8,220)	(19,912)	(19,912)	(19,912)
Preferred Dividends
Other Financing Cashflow	(87,190)	(86,834)	(91,763)	(96,693)
Cash Flow From Financing	(50,050)	(56,746)	(61,675)	(66,605)
Total Cash Generated	(75,650)	80,676	100,245	127,901
Free Cashflow To Equity	19,700	187,422	211,921	244,506
Free Cashflow To Firm	54,910	224,256	253,684	291,199

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	123,510	204,156	304,402	432,303
Total Debtors	75,480	74,598	77,572	80,437
Inventories	378,150	365,086	382,306	398,892
Total Other Current Assets	68,200	68,200	68,200	68,200
Total Current Assets	645,340	712,040	832,480	979,832
Fixed Assets	1,410,380	1,402,123	1,389,446	1,372,350
Total Investments	55,340	55,340	55,340	55,340
Intangible Assets	6,390	6,390	6,390	6,390
Total Other Non-Current Assets	164,530	164,530	164,530	164,530
Total Non-current Assets	1,636,640	1,628,383	1,615,706	1,598,610
Short-term Debt	182,210	182,210	182,210	182,210
Current Portion of Long-Term Debt
Total Creditors	333,650	322,124	337,317	351,951
Other Current Liabilities	144,790	144,790	144,790	144,790
Total Current Liabilities	660,650	649,124	664,317	678,951
Total Long-term Debt	673,540	723,540	773,540	823,540
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	38,930	38,930	38,930	38,930
Total Non-current Liabilities	712,470	762,470	812,470	862,470
Total Provisions	111,100	106,869	107,216	107,586
Total Liabilities	1,484,220	1,518,463	1,584,003	1,649,007
Shareholders Equity	776,690	800,890	843,113	908,365
Minority Interests	21,070	21,070	21,070	21,070
Total Equity	797,760	821,960	864,183	929,435

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	5.5%	(4.8%)	4.7%	4.3%
Operating EBITDA Growth	52.2%	(21.0%)	15.0%	15.6%
Operating EBITDA Margin	16.1%	13.4%	14.7%	16.3%
Net Cash Per Share (Rs)	(242.43)	(232.28)	(215.65)	(189.85)
BVPS (Rs)	257.14	265.16	279.13	300.74
Gross Interest Cover	2.48	1.55	1.78	2.06
Effective Tax Rate	32.9%	26.0%	25.7%	25.6%
Net Dividend Payout Ratio	23.3%	46.0%	32.3%	23.4%
Accounts Receivables Days	15.31	16.44	15.92	15.84
Inventory Days	141.25	154.91	151.23	156.55
Accounts Payables Days	142.48	136.68	133.44	138.13
ROIC (%)	8.3%	8.4%	10.2%	12.5%
ROCE (%)	12.2%	7.5%	8.8%	10.1%
Return On Average Assets	6.3%	5.6%	6.4%	7.2%

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

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

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Market Data

Source: Bloomberg