JSW Steel
JSW Steel on January 20 reported an 85.50 percent year-on-year (YoY) decrease in its consolidated net profit for the quarter ended December 2022 (Q3FY23) at Rs 474 crore. The steelmaker reported a profit of Rs 4,516 crore in the same quarter of the previous financial year.
Its revenue from operations climbed 2.79 percent to Rs 39,134 crore against Rs 38,071 crore in the year-ago period, the company said in an exchange filing.
The numbers were worse than estimated. A poll of analysts suggested the steelmaker could clock a net profit of Rs 665.5 crore in the third quarter. JSW Steel’s consolidated revenue was expected to rise 1.7 percent YoY to Rs 38,719.63 crore.
During the quarter, the combined crude steel production of JSW Steel stood at 6.24 million tonnes - highest ever - sequentially higher by 10 percent, mainly due to the ramp-up at 5 metric tonne per annum (mtpa) Dolvi Phase-II expansion which achieved capacity utilisation of 85 percent vs. 80 percent in Q2 FY23, said the company.
The re-starting of facilities at JSW Ispat Special Products (JISPL) after a maintenance shutdown that had commenced in Q2 FY23, and the ongoing ramp-up of Bhushan Power and Steel (BPSL) operations after expansion from 2.75 mtpa to 3.5 mtpa capacity, also contributed to higher production.
Saleable steel sales were at 5.63 million tonnes during the quarter while operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at Rs 4,547 crore. EBITDA margin was at 11.6 percent.
The company underlined that the domestic steel industry witnessed demand growth with consumption at 29.86 million tonnes in Q3 FY23, up by 10.5 percent YoY and 6.0 percent QoQ, supported by better demand from the infrastructure sector.
During Q3 FY23, exports (excluding semis) from India were at 1.14 million tonnes, lower by 55.7 percent YoY and 19.2 percent QoQ. The export duties on finished steel products that were imposed in May 2022, were rolled back on 19th November 2022; this should improve the competitiveness of the Indian steel industry in the global markets going forward, it added.
JSW Steel’s net debt to equity was at 1.09 times and net debt to EBITDA was at 3.51 times.
"The rural economy is expected to recover on the back of a better winter crop, elevated reservoir levels and falling inflation. The outlook for residential real estate, autos and renewables remains strong. However, the global slowdown and geopolitical risks remain key headwinds," the company said.JSW Steel Q3 result: Net profit tanks 86% to Rs 474 crore, misses estimates - Moneycontrol
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