26 May 2019

4QFY16 Results Update | Sector: Metals

JSW Steel
BSE SENSEX S&P CNX
39,435 11,844
CMP: INR288 TP: INR332(+15%) Buy
Bloomberg JSTL IN
Equity Shares (m) 2,417
Strong volumes, lower CoP drive outperformance
M.Cap.(INRb)/(USDb) 695.3 / 10 Strong project pipeline provides comfort; Maintain Buy
52-Week Range (INR) 427 / 257 Consol. EBITDA of INR44.4b (-1% QoQ) in 4QFY19 was 10% ahead of our
1, 6, 12 Rel. Per (%) -3/-23/-22 estimate, led by strong volumes and lower cost of production, partly offset by
12M Avg Val (INR M) 2025
reduced realizations. This, along with other income (+43% QoQ), led to a 22%
Free float (%) 57.3
beat in consol. PAT (INR15.2b; -6% QoQ).
 Standalone volumes increased 17% QoQ to 4.29mt, led by exports (+1.6x
Financials & Valuations (INR b)
QoQ). Realizations were down 8% QoQ due to lower steel prices and a
Y/E Mar 2019 2020E 2021E
higher exports mix.
Net Sales 847.6 818.2 950.3
 Spreads (realization – RM cost) at the standalone level were down by
EBITDA 189.5 164.1 199.6
PAT 76.4 52.6 71.8 ~INR3,843/t QoQ owing to lower realizations, partly offset by reduced
EPS (INR) 31.8 21.9 29.9 production costs. Standalone EBITDA was down 2% QoQ at INR43.4b (10%
Gr. (%) 32.4 -31.2 36.6 beat).
BV/Sh (INR) 145.0 161.1 186.1  EBITDA of subsidiaries was up 57% QoQ to INR990m (12% beat), led by a
RoE (%) 24.4 14.3 17.2 better US plate mill performance and lower losses for Aferpi, partly offset by
RoCE (%) 11.1 7.7 8.7 higher losses at Acero.
P/E (x) 9.0 13.1 9.6  For FY19, consol. EBITDA was up 29% YoY to INR189.5b, while PAT rose 32%
P/BV (x) 2.0 1.8 1.5
to INR76.4b. Net debt (incl. acceptances) stood at INR564b (+INR82b YoY).
 Operations for the recently acquired international businesses are expected
to turn around, led by gradual liquidation of high-cost inventory at Acero
Estimate change and ramp-up of operations at Aferpi. On the domestic front, (1) an
TP change improving product mix, (2) lower thermal coal prices and (3) higher captive
Rating change iron ore production should restrict costs, supporting margins. This apart,
JSTL’s ongoing 5mtpa Dolvi expansion remains on track, improving growth
visibility.
 We maintain our Buy rating on JSTL with a target price of INR332 (earlier:
336). Our TP is based on 7x EV/EBITDA and book value for CWIP.
Quarterly Performance (Consolidated) – INR m
Y/E March FY18 FY19 FY18 FY19 vs Est
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4QE (%)
Net Sales 148,285 169,475 178,610 204,500 205,190 215,520 203,180 223,680 700,870 847,570 212,206 5
Change (YoY %) 26.7 28.1 27.5 22.8 38.4 27.2 13.8 9.4 26.0 20.9 3.8
EBITDA 27,465 31,655 38,510 49,230 51,050 49,060 45,010 44,400 146,860 189,520 40,323 10
Change (YoY %) -16.0 7.0 34.3 55.6 85.9 55.0 16.9 -9.8 19.8 29.0 -18.1
EBITDA (INR per ton) 8,102 7,994 9,556 11,666 13,329 12,389 12,231 10,350 9,402 12,025 9,835 5
EBITDA (USD per ton) 121 126 150 181 199 177 170 147 146 172 137 8
Interest 9,450 9,500 9,230 8,830 8,870 9,630 10,210 10,460 37,010 39,170 10,070 4
Depreciation 8,190 8,510 8,520 8,650 9,050 9,740 10,780 10,840 33,870 40,410 10,795 0
Other Income 410 390 420 450 580 560 370 530 1,670 2,040 322 65
PBT (before EO Item) 10,235 14,035 21,180 32,200 33,710 30,250 24,390 23,630 77,650 111,980 19,780 19
EO Items -1,295 -1,295 -2,640 10,960 5,730
PBT (after EO Item) 8,940 12,740 18,540 43,160 33,710 30,250 24,390 23,630 83,380 111,980 19,780 19
Total Tax 2,840 4,450 940 14,440 10,530 9,360 8,200 8,350 22,670 36,440 7,795
% Tax 31.8 34.9 5.1 33.5 31.2 30.9 33.6 35.3 27.2 32.5 39.4
Reported PAT 6,100 8,290 17,600 28,720 23,180 20,890 16,190 15,280 60,710 75,540 11,984 28
MI (Profit)/Loss 30 -210 1,170 270 390 210 280 990 1,150 510
Share of P/(L) of Ass. 140 70 140 70 210 -20 -160 -330 420 -300 25
Adjusted PAT 7,183 9,333 19,452 21,980 23,660 21,260 16,240 15,230 57,948 76,390 12,519 22
Change (YoY %) -35.2 28.5 166.5 116.7 229.4 127.8 -16.5 -30.7 61.9 31.8 -53.1

Dhruv Muchhal – Research Analyst (Dhruv.Muchhal@MotilalOswal.com); +91 22 6129 1549

Aniket Mittal – Research Analyst (Aniket.Mittal@MotilalOswal.com); +91 22 6129 1572
Investors are advised to refer through important disclosures made at the last page of the Research Report.
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 JSW Steel

Standalone: Strong sales volumes led by higher exports

 Steel production decreased 1% QoQ to 4.17mt.
 Sales increased 17% QoQ (+2% YoY) to 4.29mt on the back of inventory
liquidation and aided by higher exports. Net realizations declined INR4,058 QoQ
to INR45,923/t.
 Spreads (realization – RM cost) were down ~INR3,843 QoQ to INR20,872/t.
 EBITDA per ton was down ~1,941 QoQ to INR10,119 owing to lower realizations,
partly offset by higher volume-led benefits and lower cost of production.
 PAT declined 8% QoQ to INR17.5b.

Exhibit 1: Quarterly Performance (Standalone) INR million

Y/E March FY18 FY19 FY18 FY19 vs Est
(Standalone) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4QE (%)
Sales ('000 tons) 3,510 3,920 3,970 4,220 3,830 3,960 3,680 4,290 15,620 15,760 4,100 5
Change (YoY %) 5.1 2.1 9.1 6.6 9.1 1.0 -7.3 1.7 5.7 0.9 -2.8
Realization (INR/T) 39,791 38,483 41,443 45,810 49,514 49,669 49,981 45,923 41,509 48,685 47,000 -2
Change (QoQ, INR) -56 -1,307 2,960 4,367 3,704 155 312 -4,058 6,130 7,176 -2,981
Net Sales 139,665 150,855 164,530 193,320 189,640 196,690 183,930 197,010 648,370 767,270 192,700 2
EBITDA 23,275 30,565 35,730 46,760 48,220 48,020 44,380 43,410 136,330 184,030 39,438 10
Margin (%) 16.7 20.3 21.7 24.2 25.4 24.4 24.1 22.0 21.0 24.0 20.5
Spreads 15,731 16,088 17,476 20,450 24,029 23,753 24,715 20,872 17,539 23,260 20,584 1
Conv. cost 9,100 8,291 8,476 9,370 11,439 11,626 12,655 10,753 8,811 11,583 10,965 -2
EBITDA (INR/T) 6,631 7,797 9,000 11,081 12,590 12,126 12,060 10,119 8,728 11,677 9,619 5
EBITDA (USD/T) 103 121 139 172 188 173 167 144 135 167 134 8
Interest 9,070 9,190 8,920 8,730 8,660 9,290 9,570 9,560 35,910 37,080 9,430 1
Depreciation 7,320 7,720 7,690 7,810 8,190 8,580 8,550 8,650 30,540 33,970 8,565 1
Other Income 480 490 430 730 1,670 2,020 670 830 2,130 5,190 1,104 -25
PBT (before EO Item) 7,365 14,145 19,550 30,950 33,040 32,170 26,930 26,030 72,010 118,170 22,547 15
EO Items -1,295 -1,295 -2,340 3,670 -1,260
PBT (after EO Item) 6,070 12,850 17,210 34,620 33,040 32,170 26,930 26,030 70,750 118,170 22,547 15
Total Tax 1,880 4,400 5,950 12,270 9,660 9,330 8,010 8,580 24,500 35,580 7,666 12
% Tax 31.0 34.2 34.6 35.4 29.2 29.0 29.7 33.0 34.6 30.1 34.0
Reported PAT 4,190 8,450 11,260 22,350 23,380 22,840 18,920 17,450 46,250 82,590 14,881 17
Pref. Dividend
Adjusted PAT 5,037 9,297 12,790 19,951 23,380 22,840 18,920 17,450 47,074 82,590 14,881 17
Change (YoY %) -53.5 38.4 56.1 98.8 364.2 145.7 47.9 -12.5 31.6 75.4 -25.0
Source: Company, MOFSL

Exhibit 2: JSW Steel EBITDA and spreads

EBITDA (INR/t) Spreads (INR/t)
25,000

20,000

15,000

10,000
11,081
12,590
12,126
12,060
10,119
6,783
8,230
6,457
5,527
6,674
6,859
7,137
7,478
8,052
8,545
8,534
6,988
5,469
4,838
4,986
3,443
5,404
9,276
7,077
7,717
7,586
6,631
7,797
9,000

5,000

0
4Q 12
1Q 13
2Q 13
3Q 13
4Q 13
1Q 14
2Q 14
3Q 14
4Q 14
1Q 15
2Q 15
3Q 15
4Q 15
1Q 16
2Q 16
3Q 16
4Q 16
1Q 17
2Q 17
3Q 17
4Q 17
1Q 18
2Q 18
3Q 18
4Q 18
1Q 19
2Q 19
3Q 19
4Q 19

Source: MOFSL, Company

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 JSW Steel

Exhibit 3: HRC spreads (HRC - 1.6x iron ore - 0.7x coking coal) – USD/t
EU China
450
395
340
285
230
175
120

Jun-12

Jun-13

Jun-14

Jun-15

Jun-16

Jun-17

Jun-18
Sep-12
Dec-12
Mar-13

Sep-13
Dec-13
Mar-14

Sep-14
Dec-14
Mar-15

Sep-15
Dec-15
Mar-16

Sep-16
Dec-16
Mar-17

Sep-17
Dec-17
Mar-18

Sep-18
Dec-18
Mar-19
Source: MOFSL, Bloomberg

Subsidiaries: Aferpi ramping up, Acero losses increase

 EBITDA of subsidiaries was up 57% QoQ to INR990m (12% beat), led by a better
US plate mill performance and lower losses for Aferpi.
 Acero reported an EBITDA loss of USD27.81m for the quarter. It produced
55,264t of HRC with sales of 59,660t.
 Aferpi produced 127,399 tons of rolled long products (v/s 3Q: 68,036 tons) and
sold 104,688 tons (v/s 3Q: 45,948 tons) during the quarter. It reported an
EBITDA loss of EUR 2.97m for the quarter.

Exhibit 4: Quarterly Performance (Subsidiaries) INR million

Y/E March FY18 FY19 FY18 FY19 vs Est
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4QE (%)
Net Sales 8,620 18,620 14,080 11,180 15,550 18,830 19,250 26,670 52,500 80,300 19,506 37
EBITDA 4,190 1,090 2,780 2,470 2,830 1,040 630 990 10,530 5,490 886 12
JSW coated 2,050 1,410 900 2,020 1,220 880 970 860 6,380 3,930 1,050 -18
US Mills 329 64 250 210 715 385 293 411 853 1,804 401
Acero -760 -1,959 -2,719 -545
Aferpi -600 -238 -837 -429
others 1,811 -384 1,630 240 895 -225 727 1,916 3,297 3,313 409
PAT 2,146 36 6,663 2,029 280 -1,580 -2,680 -2,220 10,874 -6,200 -2,362 -6
Source: MOFSL

Conference call highlights

 Exports: Exports accounted for 22% of total sales volume in 4Q (v/s 10% in 3Q).
For FY19, total exports volumes stood at 2.4mt v/s 3.6mt in FY18.
 Coking coal: Coking coal costs for the company in 4Q were USD5/mt higher
QoQ.
 Monnet Ispat: Pellet plant currently at 1.8mtpa capacity. The company plans to
increase its pellet capacity to 2.4mtpa by 2HFY20.
 Vijaynagar BF-3 shutdown: The company has decided to defer the shutdown of
Vijayanagar’s BF-3. JSTL will await the commissioning of BF at Dolvi before
undertaking the shutdown to ensure no loss of volumes in FY20.
 Aferpi: The company expects Aferpi to ramp up to 60% capacity utilization by
end-FY20.
 Acero: Turnaround in Acero will take time as the company has high cost
inventory of scrap/slab. JSTL expects Acero to turn EBITDA positive by 4QFY20.

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 JSW Steel

 Auction of iron ore mines: JSTL expects the process of auctioning of merchant
iron ore mines (which are due to expire in Mar'20) to begin in Jul'19. The
company highlighted that Karnataka is well prepared and is likely to be the first
one to begin with the auction process. It expects Orissa to be ready for the same
by Jul-Aug ’19.
 Guidance:
 FY20 production of 16.95mt and sales of 16mt - representing 1.5% YoY
growth for both.
 Domestic demand growth of 6.5-7% in FY20.
 Coking coal costs to remain stable at 4Q levels in 1QFY20.
 Capex of INR157b in FY20.
 FY20 iron ore production from captive mines at 5mt (v/s 1.8mt in FY19).

Exhibit 5: Target price calculations - INR m

Y/E March 2017 2018 2019 2020E
A. S/A volumes 14.8 15.6 15.8 16.1
B. EBITDA per ton 7,868 8,728 11,677 9,439
C. S/A EBITDA (AxB) 116,288 136,330 184,030 151,741
D. Sub. EBITDA 6,310 10,530 5,490 12,311
E. Cons. EBITDA (C+D) 122,598 146,860 189,520 164,052
F. Target EV/EBITDA (x) 7.0
G. Target EV (FxG) 1,148,363
less: Net Debt (Rs m) 522,350 482,720 564,409 591,012
add: CWIP 43,630 59,500 118,890 238,890
Equity value 796,241
No. of shares 2,410 2,400 2,400
Equity value /sh. 332
Source: MOFSL

Exhibit 6: Metals valuation

CMP MCAP EPS P/E (x) EV/EBITDA (x) P/B(x)
Rating
(INR) (USD M) FY18 FY19E FY20E FY19E FY20E FY19E FY20E FY19E FY20E
Steel
Tata Steel Neutral 484 6,674 69.5 88.6 78.6 5.5 6.1 5.2 5.7 0.9 0.8
JSW Steel Buy 288 9,880 24.0 31.8 21.9 9.0 13.1 6.6 7.8 2.0 1.8
JSPL Buy 161 2,092 -8.5 11.5 -12.5 14 -12.9 6.7 6.9 0.5 0.5
SAIL Neutral 52 3,029 0.3 5.0 6.1 10.4 8.5 7.3 6.2 0.6 0.5
Non-Ferrous
Hindalco Buy 196 5,746 18.9 24.7 22.9 7.9 8.5 5.3 5.7 1.1 1.0
Nalco Buy 50 1,826 5.1 8.8 5.7 5.7 8.7 2.5 4.2 0.9 1.0
Vedanta Sell 164 6,903 20.4 18.1 16.6 9.0 9.8 5.7 4.6 1.0 1.0
Rain Ind.* Buy 115 551 23.7 20.4 11.7 5.7 9.9 5.2 7.1 0.8 0.8
Mining
Coal India Buy 245 21,954 19.2 27.4 29.0 8.9 8.4 4.1 4.2 7.4 6.8
Hindustan Zinc Neutral 253 15,184 21.1 18.8 21.6 13.4 11.7 8.4 7.0 3.2 2.7
NMDC Buy 98 5,515 13.1 15.4 10.7 6.4 9.1 3.6 5.2 1.2 1.1
Source: MOFSL, Company

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 JSW Steel

Financials and Valuations

Income Statement (INR Million)
Y/E Mar 2014 2015 2016 2017 2018 2019 2020E 2021E
Net Sales 512,197 529,715 418,789 556,046 700,870 847,570 818,157 950,257
Change (%) 34.0 3.4 -20.9 32.8 26.0 20.9 -3.5 16.1
EBITDA 91,655 94,023 60,730 122,598 146,860 189,520 164,052 199,579
EBITDA Margin (%) 17.9 17.7 14.5 22.0 21.0 22.4 20.1 21.0
Depreciation 31,826 34,345 31,879 35,154 33,870 40,410 43,216 46,985
EBIT 59,829 59,678 28,851 87,444 112,990 149,110 120,836 152,594

Interest 30,479 34,930 33,027 37,681 37,010 39,170 41,854 47,853

Other Income 858 1,114 1,682 1,521 1,670 2,040 2,080 2,068
Extraordinary items -17,128 -471 -21,254 0 5,730 0 0 0
PBT 13,081 25,391 -23,748 51,284 83,380 111,980 81,061 106,810
Tax 9,201 8,194 -15,241 16,743 22,670 36,440 29,040 35,497
Tax Rate (%) 70.3 32.3 64.2 32.6 27.2 32.5 35.8 33.2
Min. Int. & Assoc. Share 504 748 950 64 990 1,150 1,128 1,121
Reported PAT 3,232 16,191 -9,599 35,670 60,140 74,090 50,312 69,552
Adjusted PAT 9,322 18,006 -84 35,798 57,948 76,390 52,569 71,795
Change (%) -16.0 93.2 -100.5 -42,485.0 61.9 31.8 -31.2 36.6

Balance Sheet (INR Million)

Y/E Mar 2014 2015 2016 2017 2018 2019 2020E 2021E
Share Capital 2,417 2,417 2,417 2,400 2,410 2,400 2,400 2,400
Reserves 209,322 220,479 185,032 224,070 277,570 345,550 384,211 444,293
Net Worth 211,739 222,896 187,449 226,470 279,980 347,950 386,611 446,693
Debt 436,858 496,419 513,038 540,200 496,470 627,099 681,335 731,335
Deferred Tax 21,234 28,894 39,123 29,900 25,560 37,770 50,597 64,732
Total Capital Employed 671,502 749,186 739,678 794,110 797,370 1,008,319 1,114,043 1,238,260
Gross Fixed Assets 612,979 701,889 789,575 663,830 688,170 776,540 806,540 1,006,540
Less: Acc Depreciation 142,520 180,126 226,239 76,530 109,690 150,100 193,316 240,301
Net Fixed Assets 470,459 521,763 563,336 587,300 578,480 626,440 613,224 766,239
Capital WIP 93,998 82,653 69,040 43,630 59,500 118,890 238,890 198,890
Investments 5,947 5,990 6,184 10,660 11,570 18,120 18,120 18,120
Current Assets 205,995 246,134 207,727 238,460 270,150 384,520 385,602 395,368
Inventory 81,551 110,090 84,034 113,950 125,940 145,480 134,492 182,241
Debtors 22,924 24,998 28,016 41,490 47,040 71,600 56,038 44,259
Cash & Bank 7,310 19,136 7,340 17,850 13,750 62,690 90,322 64,119
Loans & Adv, Others 94,209 91,910 88,337 65,170 83,420 104,750 104,750 104,750
Curr Liabs & Provns 104,897 107,353 106,610 85,940 122,330 139,652 141,793 140,357
Curr. Liabilities 35,400 33,651 37,125 38,460 69,110 69,588 71,729 70,293
Provisions 69,497 73,703 69,485 47,480 53,220 70,064 70,064 70,064
Net Current Assets 101,097 138,781 101,117 152,520 147,820 244,869 243,809 255,011
Total Assets 671,502 749,186 739,678 794,110 797,370 1,008,319 1,114,043 1,238,260

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 JSW Steel

Financials and Valuations

Ratios
Y/E Mar 2014 2015 2016 2017 2018 2019 2020E 2021E
Basic (INR)
EPS 3.9 7.4 0.0 14.9 24.0 31.8 21.9 29.9
Cash EPS 14.8 21.3 9.7 29.0 39.2 48.3 39.7 49.3
Book Value 87.6 92.2 77.5 94.4 116.2 145.0 161.1 186.1
DPS 1.1 1.1 1.1 0.8 2.3 3.3 4.0 3.2
Valuation(x)
P/E 74.6 38.6 -8232.5 19.3 12.0 9.0 13.1 9.6
Cash P/E 19.5 13.5 29.8 9.9 7.3 6.0 7.2 5.8
Price / Book Value 3.3 3.1 3.7 3.0 2.5 2.0 1.8 1.5
EV/Sales 2.2 2.2 2.9 2.2 1.7 1.5 1.6 1.4
EV/EBITDA 12.3 12.5 19.8 9.9 8.0 6.6 7.8 6.8
EV/ton 1,567 1,595 1,516 1,223 1,168 1,139 1,141 1,023
Dividend Yield (%) 0.4 0.4 0.4 0.3 0.8 1.1 1.4 1.1
Profitability Ratios (%)
RoE 4.7 8.3 0.0 17.4 22.8 24.4 14.3 17.2
RoCE 6.9 5.7 2.7 7.9 9.6 11.1 7.7 8.7
RoIC 8 7 3 8 11 13 10 12
Turnover Ratios (%)
Asset Turnover (x) 0.8 0.7 0.6 0.7 0.9 0.8 0.7 0.8
Inventory (No. of Days) 58 76 73 75 66 63 60 70
Debtors (No. of Days) 16 17 24 27 24 31 25 17
Leverage Ratios (%)
Net Debt/Equity (x) 2.0 2.1 2.7 2.3 1.7 1.6 1.5 1.5

Cash Flow Statement (INR Million)

Y/E Mar 2014 2015 2016 2017 2018 2019 2020E 2021E
Adjusted EBITDA 91,655 94,023 60,730 122,598 146,860 189,520 164,052 199,579
Non cash opr. exp (inc) -26,487 -5,522 2,172 -2,658 2,340 91,646 0 0
(Inc)/Dec in Wkg. Cap. -35,195 -11,748 6,189 -38,690 -11,010 -43,623 28,692 -37,406
Tax Paid -4,038 -7,728 -2,055 -2,370 -14,400 -22,396 -16,212 -21,362
Other operating activities 0 0 0 0 0 0 0 0
CF from Op. Activity 25,935 69,025 67,035 78,880 123,790 215,147 176,531 140,811
(Inc)/Dec in FA & CWIP -57,629 -67,206 -51,787 -44,350 -47,360 -147,760 -150,000 -160,000
Free cash flows -31,693 1,819 15,249 34,530 76,430 67,387 26,531 -19,189
(Pur)/Sale of Invt 176 702 -1 -2,940 90 0 0 0
Others -12,146 10,996 709 6,020 1,230 -2,960 2,080 2,068
CF from Inv. Activity -69,599 -55,509 -51,079 -41,270 -46,040 -150,720 -147,920 -157,932
Inc/(Dec) in Net Worth 0 0 0 20 -270 0 0 0
Inc / (Dec) in Debt 60,290 27,373 3,781 10,750 -39,920 30,000 50,000 50,000
Interest Paid -24,131 -25,626 -27,997 -35,690 -35,110 -39,170 -41,854 -47,853
Divd Paid (incl Tax) & Others -3,155 -3,437 -3,536 -2,180 -6,550 -6,317 -9,125 -11,231
CF from Fin. Activity 33,005 -1,691 -27,752 -27,100 -81,850 -15,487 -979 -9,083
Inc/(Dec) in Cash -10,659 11,826 -11,796 10,510 -4,100 48,940 27,632 -26,204
Add: Opening Balance 17,969 7,310 19,136 7,340 17,850 13,750 62,690 90,322
Closing Balance 7,310 19,136 7,340 17,850 13,750 62,690 90,322 64,119

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 JSW Steel

Corporate profile
Exhibit 1: Sensex rebased
Company description
JSW Steel has 18mtpa steel capacity in India and a
small plate and pipe mill the US. It recently acquired
3mt hot strip mill in US and 1.3mt rolling mill in
Italy. JSW Steel is also expanding capacity in India
by 6.7mtpa to 25mtpa by end of FY20. JSW Steel is
most efficient steel producer in India and has strong
project execution skills.

Source: MOFSL/Bloomberg

Exhibit 2: Shareholding pattern (%) Exhibit 3: Top holders

Mar-19 Dec-18 Mar-18 Holder Name % Holding
Promoter 42.7 42.6 41.8 JFE STEEL INTERNATIONAL EUROPE B.V. 15.0
DII 3.4 3.1 18.3 GAGANDEEP CREDIT CAPITAL PVT LTD 2.0
FII 19.2 20.3 20.3 LOTUS GLOBAL INVESTMENTS LTD 1.6
Others 34.7 34.1 19.7 APMS INVESTMENT FUND LIMITED 1.5
Note: FII Includes depository receipts Source: Capitaline THELEME MASTER FUND LIMITED 1.2
Source: Capitaline

Exhibit 4: Top management Exhibit 5: Directors

Name Designation Name Name
Sajjan Jindal Chairman & Managing Director Jayant Acharya H Khaitan
Savitri Devi Jindal Chairman Emeritus Kannan Vijayaraghavan Malay Mukherjee
Vinod Nowal Deputy Managing Director Punita Kumar Sinha Seturaman Mahalingam
Seshagiri Rao Jt. Managing Dir. & Group CFO Vijay Kelkar Hiromu Oka
Lancy Varghese Company Secretary NAVEEN RAJ SINGH

Source: Capitaline *Independent

Exhibit 6: Auditors Exhibit 7: MOFSL forecast v/s consensus

Name Type EPS MOFSL Consensus
Variation (%)
(INR) forecast forecast
Deloitte Haskins & Sells LLP Statutory
FY20 21.9 27.3 -19.9
S R Bhargave & Co Cost Auditor
FY21 29.9 30.2 -1.1
Source: Bloomberg

Source: Capitaline

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 JSW Steel

NOTES

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 JSW Steel

Explanation of Investment Rating

Investment Rating Expected return (over 12-month)
BUY >=15%
SELL < - 10%
NEUTRAL < - 10 % to 15%
UNDER REVIEW Rating may undergo a change
NOT RATED We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
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though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
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to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
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located in Hong Kong & are not conducting Research Analysis in Hong Kong.
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Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
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The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
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Specific Disclosures
1 MOSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOSL has not received any compensation or other benefits from third party in connection with the research report
10 MOSL has not engaged in market making activity for the subject company

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 JSW Steel

********************************************************************************************************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.

The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
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nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
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customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for
informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing
in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this
document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
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accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website www.motilaloswal.com.CIN no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
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* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.

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