JSW Steel records highest-ever profit of ₹5,900 cr in Q1
Better realisation, higher output boost performance
Sajjan Jindal-led JSW Steel has recorded the highest-ever profit of ₹5,900 crore in the June quarter, against a net loss of ₹582 crore in the same period last year, largely due to higher production and better realisation.
Gross sales jumped to ₹28,432 crore (₹11,454 crore). The company has recorded ₹315 crore as share of profit from investment in its subsidiary Piombino Steel which acquired Bhushan Power and Steel in March.
Crude steel production was up 39 per cent at 4.10 million tonnes (2.96 mt) while sales increased 29 per cent to 3.61 mt (2.80 mt).
However, on a sequential basis both production and sales were down two per cent and 11 per cent on back of slowing demand.
JSW Steel will invest ₹750 crore in the promoters-owned JSW Paints in four tranches over next four fiscals. In the first tranche, it had invested ₹300 crore to acquire 6.88 per cent equity shares in the company.
The group captive scheme allows a waiver of the cross-subsidy surcharge and requires the buyer to hold 26 per cent equity in the power supplier.
The average capacity utilisation at 91 per cent in the quarter was down marginally by 2 per cent compared to the March quarter due to diversion of oxygen for medical purposes, the company said.
JSW Steel registered highest-ever EBITDA of ₹9,491 crore, an increase of 18 per cent quarter-on-quarter primarily due to higher realisations which was partially offset by an increase in raw material cost, especially that of iron ore and coal.
The company expects to double Dolvi capacity to 10 mtpa by September quarter. Of the planned capex of ₹18,240 crore in this fiscal, the company has spent ₹2,688 crore.