JSW Holdings (JSWHL) Q4 20/21 earnings summary

Executive summary

• FY2020-21 revenue fell to ₹9,281.19 lakh from ₹12,101.45 lakh; standalone net profit declined 36.86% to ₹6,570.52 lakh, mainly on lower dividend income.

• As a core investment vehicle, the business centers on investing, lending and pledging securities for group entities; JSW Steel shares were valued above ₹8,400 crore at March 31, 2021.

• Consolidated PAT was ₹7,521.50 lakh, including ₹950.98 lakh share of associate profits; no FY2020-21 equity dividend was recommended to conserve resources.

Financial highlights

• Standalone operating EBITDA was ₹8,779.86 lakh vs ₹11,548.12 lakh; PBT was ₹8,770.51 lakh vs ₹11,545.59 lakh, and PAT was ₹6,570.52 lakh vs ₹10,406.49 lakh.

• Revenue comprised interest income ₹4,893.92 lakh, dividend income ₹3,628.05 lakh and pledge fees ₹759.22 lakh; dividend income fell from ₹7,332.33 lakh YoY.

• Consolidated PAT declined to ₹7,521.50 lakh from ₹10,643.82 lakh; consolidated EPS was ₹67.96 vs ₹96.17.

• Standalone total comprehensive income was ₹544,306.77 lakh, with ₹537,736.25 lakh OCI, largely reflecting fair-value gains on equity investments.

Outlook and guidance

• Prospects depend substantially on JSW Steel and the steel industry; long-term domestic steel demand is expected to benefit from infrastructure, manufacturing, urbanization and industrialization.

• Indian Steel Association projected 7% steel-demand growth in calendar 2021; JSW Steel’s capacity expansion was expected to be achieved in the next fiscal year.

• Government stimulus, infrastructure spending, domestic-steel initiatives and vaccination were cited as supports for economic recovery and demand.