Industry Profile:  India is the world’s third-largest steel producer. As a developing economy, India needs Steel to manufacture its ever-growing automobile industry and build infrastructure like railways, dams, roads, etc. The growth of the sector is driven mainly due to the availability of raw Steel. India’s crude steel output grew 10.7 percent year-on-year to 25.76 million tonnes (MT) from January-March 2017. India’s crude steel output during April 2017 increased by 5.4 percent year-on-year to 8.107 MT. Finished steel exports rose 102.1 percent to 8.24 MT, while imports fell by 36.6 percent to 7.42 MT in 2016-17. India’s steel exports rose 142 percent in April 2017 to 747,000 tonnes over April 2016, while imports fell by 23 percent to 504,000 tonnes in April 2017 over April 2016. Total finished steel consumption grew 3.4 percent year-on-year at 6.015 MT in April 2017. The sector is essential in making export and earning foreign exchange. According to the data released by the Department of Industrial Policy and Promotion (DIPP), the Indian metallurgical industries attracted Foreign Direct Investments (FDI) to the tune of US$ 10.33 billion in the period April 2000–March 2017.

Company Profile:  The company is the flagship company of the JSW group and has plants in six places in India, including Vijayanagar in Karnataka, Salem in Tamil Nadu, and Tarapur, in Vasind, Kalmeshwar, and Dolvi in Maharashtra. The company manufactures flat and long steel products, including hot-rolled (HR) coils, sheets, and plates; cold rolled coils and sheets; galvanized products; galvalume products; non-grain oriented electrical Steel (CRNGO); pre-painted galvanized products (color coated sheets/coils); pre-painted galvalume products; wire rods; special steel bars/wires; rounds and blooms, and angles. Its color-coated products include JSW Pragati, JSW Colour on, and JSW Colouron+. Its galvanized products include JSW Vishwas and GALVOS.

Shareholding Pattern:  BSE Data

Financials and ratios  :  [table id=98 /]

Future Prospects:  For any economy which is growing, Steel is a vital resource. The promoter Sajjan Jindal knows how to run the company and what not to do. And as they say, a Good advocate is all you need. I don’t need to say anything else.