JSW Steel has reported that its net profit in December quarter increased multi-fold to ₹2,669 crore against ₹187 crore in the same period last year due to higher realisation.

Sales revenue was up 23 per cent at ₹21,487 crore (₹17,416 crore). Despite paying mining premium and royalty of ₹3,604 crore (₹197 crore), the overall expenses were up only two per cent at ₹18,210 crore (₹17,719 crore) as the raw material and finance costs dipped to ₹8,652 crore (₹ 9,177 crore) and ₹997 crore (₹1,060 crore).

Quarter on quarter, net profit was up 67 per cent while sales increased 15 per cent.

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Flat steel production was down two per cent at 2.92 million tonnes while that of long products were up four per cent at 0.91 mt. With the strong recovery in economic activity, the company’s average capacity utilisation increased to 91 per cent from 86 per cent in September quarter. The company reduced inventories by 0.47 lakh tonnes during the quarter.

The proportion of higher margin value-added and special steel sales increased to 57 per cent in this quarter from 51 per cent in September quarter.

The US-based plate and pipe mill of the company continued to be under planned shutdown while the sales volumes of plates stood at 18,183 net tonnes and that of pipes were 150 net tonnes. It reported an Ebitda loss of $8.45 million in the quarter.

JSW Steel USA Ohio Inc, the hot-rolled coil making facility idled for furnace upgrade, reported Ebitda loss of $21.26 million while the long product making JSW Steel (Italy), reported Ebitda loss of €0.52 million in the quarter under review.

The company has commenced production from all the nine mines acquired in Karnataka with the last of three mines going on stream in December. Mining operations at the four mining blocks at Odisha ramped up production and dispatches. Overall iron ore supply from captive mines accounted for 49 per cent in the December quarter.

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