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JSW Steel has reported that its net profit in the December quarter increased by 69 per cent to ₹4,516 crore against ₹2,669 crore logged in the same period last year on the back of higher output and better realisation.
Sales revenue was up 74 per cent at ₹37,462 crore against ₹21,487 crore.
The company has incurred capital expenditure of ₹4,026 crore in the quarter under under review.
Sale of value-added and special products increased to 62 per cent of overall sales against 57 per cent recorded last year.
JSW Steel has made a provision of ₹1,056 crore towards payment of disputed mining premium and royalties.
The Indian Bureau of Mines (IBM) had made upward revision of already published average selling price of iron ore for September and October.
Based on legal opinion, the company believes that the methodology used by IBM for arriving at such revised average selling price by excluding certain bona fide sale transactions of iron ore by the company is not in accordance with the provisions of the Mineral Conservation and Development Rules, 2017, it said.
The company has moved the Odisha High Court against IBM decision. However, it has recognised the provision towards the levies to be paid, said the company.
Even as the Supreme Court is yet to give its final verdict on Bhushan Power and Steel (BPSL) sale, JSW Steel has increased its stake in the company to 83.28 per cent from 49 per cent by converting the optionally fully convertible debentures. BPSL has became subsidiary of JSW Steel from October 1.
BPSL reported net profit of ₹1,018 crore on revenue of ₹5,083 crore.
JSW’s Italy-based rolled long products manufacturing facility reported Ebitda loss of euro 6.8 million in the December quarter due to certain one-time write-offs and impairment charge.
The company expects the ongoing Omicron outbreak to affect growth in March quarter. However, manufacturing activity continues to be robust, and a strong bounce back is expected once the wave subsides. The current wave is much less severe than the previous waves from a health perspective, said the company.
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