JSW Steel posts 26% rise in production

JSW Steel registered a 26 per cent increase in annual crude steel production at 15.80 million tonne (mt), its highest ever, marginally surpassing its target of 15.75 mt set at the beginning of last fiscal.

It produced 11.41 mt (9.31 mt) of flat product and 3.21 mt (2.73 mt) of long product in FY’17. The company’s performance comes on the back of dumping of low cost steel during major part of last year with demonetisation of high value currency delivering the last blow in November.

Despite testing times, JSW Steel added five million tonne capacity last year with investment of ₹4,300 crore to increase its capacity to 18 mtpa.

The company had to sell a major portion of its incremental production in the international market as the domestic demand has not kept pace with rising production. Higher production in the March quarter may not result in substantial rise in profits as the company had to use high cost coal inventory.

In nine months of this financial year, JSW Steel registered a net profit of ₹2,566 crore against a loss of ₹632 crore logged in FY’16. Revenue from operations was up 24 per cent at ₹42,619 crore (₹34,230 crore) largely due to better realisation from export market.

It recorded its highest-ever quarterly steel production of 4.10 mt (3.21 mt) while that of rolled and flat productions were up 25 per cent and 7 per cent at 2.98 mt (2.38 mt) and 0.82 mt (0.77 mt).

In March, crude steel production jumped 15 per cent to 1.45 mt (1.27 mt) while flat products output was up 16 per cent at 1.05 mt (0.90 mt) while that of rolled products was down four per cent at 0.27 mt (0.28 mt).

In a letter to employees on the occasion of achieving highest ever production, Sajjan Jindal, Chairman, JSW Steel said, “as the company approaches the end of financial year, I want to share my happiness over the performance of JSW Steel”.

“We have always believed in setting up difficult and sometimes impossible targets for ourselves, but every time all of you have put your best efforts to achieve the impossible goals,” he said.

He assured employees that with the kind of support and dedication from them, the day is not far when JSW Steel would be recoginsed as the most admired company in the world.

JSW Steel is hosting a party for its employees and their family in Mumbai at a five star hotel this Friday to celebrate the occasion as ‘Family Day’.

Jindal and Joint Managing Director Seshagiri Rao will address the employees on the occasion. Similar events are being planned at the company’s plants in Karnataka and Tamil Nadu.

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