JSW Holdings (JSWHL) Q4 19/20 earnings summary

Executive summary

• FY2019-20 revenue was ₹12,101.45 lakh; standalone net profit rose ~18.5% YoY to ₹10,406.49 lakh and consolidated net profit rose ~6.41% to ₹10,643.82 lakh.

• A sharp fall in investment fair values drove consolidated total comprehensive loss of ₹112,947.14 lakh, despite higher profit after tax.

Financial highlights

• Revenue increased to ₹12,101.45 lakh from ₹10,733.07 lakh; PBT was ₹11,545.59 lakh versus ₹10,191.60 lakh.

• Consolidated PAT was ₹10,643.82 lakh, including ₹237.33 lakh share of associate profit, versus ₹10,002.58 lakh in FY2018-19.

• Consolidated comprehensive loss was ₹112,947.14 lakh versus income of ₹3,388.79 lakh, chiefly reflecting investment-related OCI losses.

• Operating cash flow was ₹10,348.89 lakh; investing cash outflow was ₹10,755.29 lakh and closing cash was ₹593.60 lakh.

Outlook and guidance

• Steel-sector performance was expected to be negatively affected in H1 FY2020-21 by COVID-19; recovery was anticipated from Q3, supported by stimulus and infrastructure spending.

• Long-term focus remained on strategic investments in JSW Steel and other group ventures, with shareholder value dependent substantially on investee growth.

• No equity dividend was recommended for FY2019-20 after considering COVID-19, liquidity, working-capital needs and long-term growth strategy.