New Delhi: Sajjan Jindal-led JSW Steel Limited on Friday reported a ₹2,773 crore net profit for the September quarter as against a net loss in the same quarter last fiscal.
The Mumbai-based steel manufacturer reported a 6.71% YoY increase in its consolidated revenue from operations to ₹44,584 crore, it said in an exchange filing.
Consolidated earnings before interest, tax, depreciation, and amortization (Ebitda) for the company stood at ₹ 7,886 crore during the quarter, with an Ebitda margin of 17.7%.
JSW Steel attributed strong growth to the government’s thrust on infrastructure – spending up 48% YoY FYTD August – and positive consumer sentiment that has been driving investments. The country, it says, has strong traction in infrastructure, energy transition, defence, and PLI schemes that are driving capex.
“Steel production as well as consumption remains strong, aided by government capex as well as overall healthy economy,” it added. “The Consolidated Crude Steel Production for the quarter stood at 6.34 million tonnes, higher by 12% YoY. The Company had taken certain maintenance shutdowns at Indian operations during the quarter; hence the average capacity utilization was 89%. Due to adverse market conditions, capacity utilization was lower at the Ohio, USA operations.”
The company reported its domestic sales at 5.49 million tonnes, which were up by 8% YoY, mostly driven by strong domestic demand and improvement in the product mix. The exports of the steel manufacturer stood at 0.69 million tonnes, constituting 11% of sales from the Indian operations.
The company’s net gearing or net debt to equity stood at 0.92 times at the end of the second quarter of the current fiscal year. Net debt increased to ₹69,195 crore during the quarter. The company believes this is primarily due to additions to borrowings arising from the merger of JSW Ispat Special Products Limited (JISPL).
“The Company’s consolidated capital expenditure (capex) spent during Q2 FY24 in India was ₹3,816 crores. During H1 FY24 consolidated capex being ₹7,996 crores as against the planned consolidated capex of ₹20,000 crores for FY24,” the company added.
The company’s total combined volume of crude steel production stood at 6.41MT in the quarter ended 30 September 2023 with a sale volume of 6.39 MT. The company’s guidance for FY24 Production stood at 26.34 Mt with Sales of 25.00 MT.
In its Ohio subsidiary in the US, JSW Steel reported an Ebitda loss of $29.4 million due to lower volumes as adverse market conditions in the US, as well as lower steel prices impacting performance during the quarter. Italy’s operations reported an Ebitda of Euro 8.9 million for the quarter with high volumes and lower net realizations impacting performance during the quarter.
Providing updates about its various ongoing projects, the company said that the 5 MTPA brownfield expansion at Vijayanagar is progressing well, with civil works underway at the site and it is expected to be completed by the end of FY24.
Shares of the company today ended at ₹662.80, up 1.8% from the previous close.
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Updated: 20 Oct 2023, 04:15 PM IST