JSW Steel net jumps four-fold to ₹7,179 crore on higher realisation

Our Bureau Mumbai | Updated on October 21, 2021

The company also achieved highest ever quarterly EBITDA of ₹10,417 crore

JSW Steel reported highest-ever quarterly net profit of ₹7,179 crore in the September quarter on back of higher realisation. The net profit was up by more than four times compared to ₹1,595 crore logged in the same period last year.

Sales increased 71 per cent to₹31,909 crore (₹18,662 crore) even as sales volume was down eight per cent at 3.79 million tonne (4.12 mt) due to the impact of the second Covid wave.

Sales were also affected by inventory build-up due to the start of the company’s new downstream facilities and an increase in inventories at the ports. Exports during the quarter increased 26 per cent as domestic demand was subdued due to the monsoon.

The company achieved the highest ever quarterly EBITDA of ₹10,417 crore despite higher raw material prices of iron ore, coking coal and other key inputs like power, natural gas and ferroalloys.

During the quarter, JSW Steel’s capacity utilisation was at 91 per cent across its operations. The company had logged other income of ₹702 crore as recognition of fair valuation gain on re-measurement of optionally fully convertible debentures held in one of the joint ventures.

The net profit contribution of Bhushan Power and Steel increased 86 per cent on a sequential basis to ₹603 crore (₹323 crore). JSW Steel exercised the conversion option of optional fully convertible debenture held in Piombino Steel, the SPV holding 100 per cent of the shares of BPSL. Following this, JSW Steel now holds a controlling stake of 83 per cent in BPSL through the SPV, effective from October 1.

Of the planned capex of ₹18,240 crore this fiscal, the company spent ₹3,639 crore in the September quarter.

Overseas operations

The Electric Arc Furnace-based steel manufacturing facility in Ohio, US reported an EBITDA of $48 million against EBITDA loss of $11 million in the same period last year. The US plate and pipe mill reported an EBITDA of $13 million.

The Italy-based rolled long products manufacturing facility reported an EBITDA of €6.10 million against EBITDA loss of €4.76 million in the June quarter.

Published on October 21, 2021

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