JSW Steel’s consolidated net profit more than doubled year-on-year to Rs 2,209 crore in the June quarter, helped by higher sales volume in India and lower costs. The country’s largest steelmaker by production capacity saw its steel sales volume for the quarter increase 9% year-on-year to 6.69 million tonnes at a consolidated level.
In India, the company sold 6.43 million tonnes of steel compared to 5.90 million tonnes a year ago.
Consolidated revenue from operations for the quarter was largely flat at Rs 43,147 crore, while operating earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 37% year-on-year to Rs 7,576 crore. “The EBITDA increased by 37% YoY, driven primarily by higher volumes and lower coking coal costs,” the company said in a statement.
Total expenses for the quarter fell to Rs 40,325 crore from Rs 41,715 crore a year ago.
EBITDA margins for the quarter stood at 17.6%, up 4.73 percentage points compared to the previous year. For its operations in India, the company made an EBITDA of Rs 11,658 per tonne, with a margin of 18.5%.
JSW Steel incurred capital expenditure of Rs 3,400 crore during the quarter and plans to spend Rs 20,000 crore for the full year. Its net debt to EBITDA ratio improved to 3.20 times at the end of the June quarter from 3.34 times in the preceding three-month period.
Net debt for the quarter increased Rs 3,287 crore from January-March, largely on account of investment in working capital.
JSW Steel announced its earnings after market hours, and its shares closed almost flat at Rs 1,034.45 apiece on the BSE.
Bhushan Power & Steel
Earlier this year, the Supreme Court had struck down JSW Steel’s buyout of Bhushan Power & Steel, terming its resolution plan for the company “illegal”.
In response, JSW Steel filed a review petition before the Supreme Court last month. The committee of creditors and resolution professional filed separate review petitions.
“We, along with our legal advisors, have analysed the matter and are of the view that we have strong grounds to pursue the review petition,” the company said in a statement.
In India, the company sold 6.43 million tonnes of steel compared to 5.90 million tonnes a year ago.
Consolidated revenue from operations for the quarter was largely flat at Rs 43,147 crore, while operating earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 37% year-on-year to Rs 7,576 crore. “The EBITDA increased by 37% YoY, driven primarily by higher volumes and lower coking coal costs,” the company said in a statement.
Total expenses for the quarter fell to Rs 40,325 crore from Rs 41,715 crore a year ago.
EBITDA margins for the quarter stood at 17.6%, up 4.73 percentage points compared to the previous year. For its operations in India, the company made an EBITDA of Rs 11,658 per tonne, with a margin of 18.5%.
JSW Steel incurred capital expenditure of Rs 3,400 crore during the quarter and plans to spend Rs 20,000 crore for the full year. Its net debt to EBITDA ratio improved to 3.20 times at the end of the June quarter from 3.34 times in the preceding three-month period.
Net debt for the quarter increased Rs 3,287 crore from January-March, largely on account of investment in working capital.
JSW Steel announced its earnings after market hours, and its shares closed almost flat at Rs 1,034.45 apiece on the BSE.
Bhushan Power & Steel
Earlier this year, the Supreme Court had struck down JSW Steel’s buyout of Bhushan Power & Steel, terming its resolution plan for the company “illegal”.
In response, JSW Steel filed a review petition before the Supreme Court last month. The committee of creditors and resolution professional filed separate review petitions.
“We, along with our legal advisors, have analysed the matter and are of the view that we have strong grounds to pursue the review petition,” the company said in a statement.
