Updated January 25th, 2024 at 15:51 IST
JSW Steel profit zooms 393% to Rs 2,415 crore in December quarter
Revenue of the country’s largest steel maker rose 7.2% to Rs 41,940 crore as against Rs 39,134 crore in the year ago period.
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Billionaire Sajjan Jindal backed JSW Steel on Thursday reported net profit of Rs 2,415 crore in December quarter, marking an increase of nearly five times, from Rs 490 crore in the same quarter last year. The sharp up move in profit came on the back of strong domestic demand.
Revenue of the country’s largest steel maker rose 7.2 per cent to Rs 41,940 crore as against Rs 39,134 crore in the year ago period.
Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) also known as operating profit advanced 58 per cent to Rs 7,180 crore and its operating profit margin improved 550 basis points to 17.1 per cent as against 11.62 per cent.
The company’s board has approved raising funds via Non-Convertible Debentures (NCDs) worth Rs 2,000 crore.
“Its consolidated crude steel production for the quarter stood at 6.87 million tonnes, higher by 8 per cent quarter-on-quarter (QoQ) and higher by 12 per cent year-on-year (YoY). The strong performance was driven by capacity utilisation rising to 94 per cent during the quarter versus 89 per cent in Q2 FY24 at the Indian operations. Capacity utilisation for 9M FY24 was 91 per cent. The Company had taken certain maintenance shutdowns at Indian operations during Q2 FY24. Capacity utilisation also improved at the Ohio, USA operations due to better demand scenario,” JSW Steel said in a press release.
“Steel Sales for the quarter stood at 6.00 million tonnes, lower by 5 per cent QoQ and higher by 7 per cent YoY. Domestic sales at 5.27 million tonnes were down by 4 per cent QoQ and higher by 2 per cent YoY. While volumes declined QoQ, the OEM and industrial volumes were strong, up 8 per cent QoQ and 12 per cent YoY, with highest quarterly sales to OEM and industrial customers, and automotive, renewable and packaging segments,” JSW Steel said.
Retail sales were particularly impacted during the quarter on higher imports and channel destocking. Exports at 0.55 million tonnes fell 20 per cent QoQ on subdued global markets and constituted 9 per cent of sales from the Indian operations.
JSW Steel shares ended 0.68 per cent higher at Rs 818.
Published January 25th, 2024 at 15:51 IST