JSW Steel to raise ₹2,000 cr to repay loans; Q3 profit up nearly 400%

livemint.com:

NEW DELHI : JSW Steel Ltd reported a fivefold jump in profit for the December quarter, surging ahead of analysts’ expectations, while its board approved raising ₹2,000 crore to repay loans and for capital expenses. The Sajjan Jindal-led company’s net profit for the third quarter increased to ₹2,415 crore from ₹490 crore in the same year-earlier period. Consolidated revenue from operations rose 7.17% year-on-year to ₹41,490 crore, as the government’s thrust on infrastructure spending boosted domestic demand for the alloy.

Analysts had expected the company to post a profit of ₹2,170 crore for the December quarter, as per a Bloomberg survey. The JSW Steel board also approved a plan to raise ₹2,000 crore by way of private placement or public issue of non-convertible debentures to service short-term maturity loans and for other capital expenditure requirements, the company said in a statement. “The board has approved the raising of long-term funds subject to applicable regulatory approvals and market conditions, through issuance of secured/un-secured, redeemable, non-convertible debentures not exceeding ₹2,000 crores…," JSW Steel said.

The company’s consolidated Ebitda, however, dropped sequentially during the third quarter to ₹7,180 crore, with Ebitda margin at 17.1%. Ebitda, or earnings before interest, tax, depreciation, and amortisation, is a key metric of operational efficiency. “Ebitda reduced by 9% QoQ driven by lower sales volumes and higher iron ore and coking coal costs.