JSW Steel targets Rs 650 cr Ebitda for Monnet Ispat before deciding on merger

JSW Steel is targeting operational earnings (Ebitda) of Rs 650 crore for Monnet Ispat and Energy, which it acquired recently, before it takes a call on the company’s merger with itself, a senior executive of JSW Steel said. Monnet Ispat will also be required to bring its net debt to Ebitda ratio down to 3.5x before any of the two parties – JSW Steel or Monnet Ispat – can seek a merger.

"In any one single financial year, if the two conditions are satisfied, then either party has a right for merger into JSW Steel,” Seshagiri Rao, joint managing director of JSW Steel, told analysts after the company announced its third-quarter earnings. In the December quarter, Monnet Ispat earned an Ebitda of Rs 21.6 crore, with sales revenue of Rs 494 crore and net loss of Rs 78 crore.