JSW Steel reports ₹2,773 crore profit on strong domestic demand

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₹2,773 crore net profit for the September quarter as against a net loss in the same quarter last fiscal. The Mumbai-based steel manufacturer reported a 6.71% YoY increase in its consolidated revenue from operations to ₹44,584 crore, it said in an exchange filing. Consolidated earnings before interest, tax, depreciation, and amortization (Ebitda) for the company stood at ₹ 7,886 crore during the quarter, with an Ebitda margin of 17.7%.

JSW Steel attributed strong growth to the government’s thrust on infrastructure - spending up 48% YoY FYTD August - and positive consumer sentiment that has been driving investments. The country, it says, has strong traction in infrastructure, energy transition, defence, and PLI schemes that are driving capex. “Steel production as well as consumption remains strong, aided by government capex as well as overall healthy economy," it added.

“The Consolidated Crude Steel Production for the quarter stood at 6.34 million tonnes, higher by 12% YoY. The Company had taken certain maintenance shutdowns at Indian operations during the quarter; hence the average capacity utilization was 89%. Due to adverse market conditions, capacity utilization was lower at the Ohio, USA operations." The company reported its domestic sales at 5.49 million tonnes, which were up by 8% YoY, mostly driven by strong domestic demand and improvement in the product mix.

The exports of the steel manufacturer stood at 0.69 million tonnes, constituting 11% of sales from the Indian operations. The company’s net gearing or net debt to equity stood at 0.92 times at the end of the second quarter of the current fiscal year. Net debt increased to ₹69,195 crore during the quarter.