Lower costs and better realisation helped the Sajjan Jindal-led JSW Steel post a net profit of Rs 2,773 crore in the September quarter, against a net loss of Rs 915 crore registered in the same period last year.
Income increased 7 per cent to Rs 44,821 crore (Rs 41,966 crore), while total expenses dropped 6 per cent to Rs 40,801 crore (Rs 43,354 crore).
It has recognised an exceptional income of Rs 589 crore, which includes a gain of Rs 780 crore by way of merger of its subsidiary CSSL and JISPL, and Rs 198 crore from sale of its mineral subsidiary in West Virginia, US.
However, it has made a provision of Rs 389 crore for Green Cess imposed by the Goa government. The company’s appeal against the cess in the Bombay High Court was dismissed and it has moved the Supreme Court against the High Court judgement. The apex court has clubbed the case with similar cases filed against Gujarat Green Cess.
The average capacity utilisation was at 89 per cent. Capacity utilisation was lower at the Ohio, US, operations due to adverse market conditions.
Net debt increased to ₹69,195 crore in the quarter due to merger of JSW Ispat Special Products.
Bhushan Power & Steel has reported a net profit of Rs 210 crore on a revenue of ₹5,817 crore and EBITDA of ₹745 crore.
JSW Steel USA Ohio reported EBITDA loss of $29.4 million for the quarter on lower sales due to adverse market conditions in the US and lower steel prices.
The US plate and pipe mill reported capacity utilisation of 37 per cent and 4 per cent, and EBITDA of $25.96 million. In Italy, it registered an EBITDA of euro 8.9 million on the back of lower realisations.
The company has spent ₹3,816 crore in the quarter under review, with investment of ₹3,701 crore in India. Subsequently, capex spent in the first half was ₹7,996 crore, with investment in India accounting for ₹7,795 crore. The company had planned capex of ₹18,800 crore in India, and ₹20,000 crore consolidated in this fiscal.
Geopolitical developments in West Asia and the Russia-Ukraine war are expected to impact steel demand, as the IMF expects global economic growth to slow down to 3 per cent this year, against 3.5 per cent logged in 2022.