SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

India’s JSW Steel reported a net profit of INR 33.43bn ($430mn) on a consolidated basis in quarter ending March 2022, down 20% YoY due to higher raw material costs and impairment provision. Revenue from operations stood at INR 469bn ($6bn) an increase of 74% YoY, on higher average capacity utilization which stood at 98%. Costs rose with coking coal cost up by $52/ton. JSW Steel expects coking coal cost to rise by $125/ton in the quarters to come which could lead to more pressure on profitability. Operating EBITDA was at INR 91.8bn ($1.2bn), 8.8% higher YoY. An impairment provision of INR 7.1bn ($91mn) was recorded alongside a further INR 310mn ($4mn) towards impairment of Capital Work In Progress. Net gearing ratio stood at 0.83x vs. 1.02x in the previous quarter. The recent quarter saw net debt reduce by INR 96.6bn ($1.2bn). It added that the board approved the merger of Creixent Special Steels Ltd (CSSL) and JSW Ispat Special Products Ltd (JISPL) into JSW Steel. The company is also looking to raise up to INR 70bn ($900mn) through the issuance of NCDs with convertible warrants or equity shares or convertible securities. For FY 2023, JSW Steel has guided for total crude steel production at 25mn metric tons and capex at around INR 200bn ($2.58bn).

JSW Steel’s dollar bonds were slightly higher with its 3.95% 2027s up 0.3 points to 88.81, yielding 6.69%.

Show Buttons
Hide Buttons