InvestorQ : Can you give me a quick heads up on the results of JSW Steel and Asian Paints?
Arti Chavan made post

Can you give me a quick heads up on the results of JSW Steel and Asian Paints?

Rutuja Nigam answered.
7 months ago

Let me talk about the concern point of Asian Paints first. It reported 33% growth in total revenues for the Sep-21 quarter at Rs.7,096 crore. There was growth across the paints vertical as well as the home improvement vertical. However, operating profits fell -34.5% fall to Rs.702 crore. This was driven by raw material costs in the Sep-21 quarter spiking up sharply by 73%.

Net profits were down -28% yoy at Rs.596 crore largely on account of spike in raw material costs getting transmitted to the bottom line. You must also remember that paints are an oil intensive product and the spike in crude to above $85/bbl in the Brent market also resulted in a big impact on the profits. Net margins at 8.40% compared to 15.52% in Sep-20 quarter.

Now for the good news on JSW Steel. It reported 69% growth in revenues for Sep-21 quarter to Rs.32,503 crore. Incidentally, JSW recorded the highest every quarterly revenues backed by growth in volumes and better price realization. It also reported highest ever EBITDA of Rs.10,417 crore in the quarter. Saleable steel at 3.83 million tonnes grew 10% QOQ. Operating margins improved from 16.95% to 28.24% over last one year.

Net profits of JSW Steel were up a whopping 350% yoy at Rs.7,170 crore with the EBITDA margins at 32%, among the best in the integrated steel industry. JSW also enhanced its exports by 26% on sequential basis. Net margins improved nearly 3-fold at 22.06% compared to just about 8.27% in Sep-20 quarter.