JSW Holdings (JSWHL) Q4 18/19 earnings summary

Executive summary

• FY19 income was driven by dividends, interest and pledge fees; standalone and consolidated profit after tax rose 29.18% and 43.81%, respectively.

• Investment and financing activity is conducted as a Core Investment Company, with significant equity holdings in JSW Steel and other group investments.

• Market capitalisation ranked 433rd on the NSE Top 500 list at FY-end.

Financial highlights

• Standalone revenue was ₹10,733.07 lakh vs ₹8,891.13 lakh; PBT ₹10,191.60 lakh vs ₹8,408.54 lakh; PAT ₹8,781.60 lakh vs ₹6,797.89 lakh.

• Consolidated revenue was ₹10,733.07 lakh vs ₹8,893.21 lakh; PAT was ₹10,002.58 lakh vs ₹6,955.47 lakh, including ₹1,220.98 lakh share of associate profit.

• Standalone basic and diluted EPS was ₹79.33 vs ₹61.36; consolidated EPS was ₹90.36 vs ₹62.78.

• Standalone total comprehensive income was ₹6,620.17 lakh vs ₹268,419.75 lakh, including FY19 OCI loss of ₹2,161.43 lakh, primarily reflecting investment fair-value movements.

Outlook and guidance

• FY20 steel-sector outlook anticipated healthy margins on consolidation and robust domestic demand; Indian steel demand was forecast to grow 7.1% in 2019 by the Indian Steel Association.

• Focus remains on long-term strategic investments in new group ventures and additional investment in existing investees to support shareholder value.

• FY20 planned loans to group entities, subject to shareholder approval and arm’s-length terms: Realcom Reality ₹22.75 crore; JSW Techno Projects Management ₹120 crore; combined JSW Techno Projects/Everbest ₹40 crore; JSW Investments ₹39 crore.