JSW Holdings (JSWHL) Q4 16/17 earnings summary

Executive summary

• FY2016-17 standalone total income was ₹6,335.16 lakh and net profit ₹4,738.34 lakh; net profit rose 29.43% YoY.

• Consolidated profit after tax was ₹4,820.82 lakh, including ₹82.48 lakh share of profit from associates.

• The investing and financing business remains focused on strategic investments in group businesses, with significant holdings in JSW Steel.

Financial highlights

• Standalone total income ₹6,335.16 lakh vs ₹5,034.92 lakh in FY2015-16; operating EBITDA ₹5,939.88 lakh vs ₹4,682.67 lakh.

• Standalone profit before tax ₹5,938.34 lakh vs ₹4,680.79 lakh; net profit ₹4,738.34 lakh vs ₹3,660.79 lakh.

• Revenue comprised dividend income ₹1,302.68 lakh, interest ₹2,910.51 lakh, pledge fees ₹809.97 lakh and other income ₹1,312.00 lakh.

• Consolidated EPS was ₹43.43; standalone EPS was ₹42.69, compared with ₹32.98 in FY2015-16.

Outlook and guidance

• Long-term plan is to invest in new ventures and consolidate existing investments; expected investee growth is linked to the outlook for India and steel.

• The CIC framework requires at least 90% of investments, loans and advances to be in group businesses; lending and guarantees are directed only to those businesses.

• The outlook cited WESP forecasts for India GDP growth of 7.7% in FY2017 and 7.6% in 2018, with infrastructure investment and consumption among potential drivers.