MUMBAI: JSW Steel reported a net profit of Rs 1,595 crore for second quarter (July-September) of FY21, down 37 percent against a net profit of Rs 2,536 during the same period last year. However, it’s a far cry from the performance in the June quarter when it had reported a net loss of Rs 582 crore.
Total revenue increased by 9.63 per cent (y-o-y) to Rs 19,264 crore.
The company achieved an average capacity utilization level of around 86 per cent for the quarter ended 30 September, 2020. This is in line with that of pre-Covid levels of 85 per cent achieved in the second quarter of the previous year.
Crude steel production during the period stood at 3.85 million tons. Saleable steel sales for the quarter was 4.12 million tons, which grew around 47 per cent (q-o-q) triggered by revival in domestic demand.
However, in the first quarter of financial year 2021, domestic steel demand rebounded from recent lows and gained momentum, while the company moderated its exports to 28 per cent from 57 per cent with higher sales in the domestic market.
The Crude Steel production and saleable steel volumes for the first half of financial year 2021 stood at 6.81 million tons and 6.92 million tons respectively. The company is on course to meet the annual guidance of 15 million tons of saleable steel.
The Company's revenue from operations stood at Rs 16,797 crores registering a growth of 63 per cent (q-o-q). The improvement in sales realisation, spurt in sale of coated products, favourable geographical and product mix helped to clock a sizeable growth in sales revenue. The operating costs were down primarily on account of lower prices of imported coal, better operating leverage and savings in procurement costs and fixed overheads. However, this benefit in cost was partially offset by increase in the iron ore prices. The increase in the net sales realization and fall in operating cost led to an EBITDA margin of 24.9 percent.
As a result, operating EBITDA for the quarter stood at Rs 4,176 crores. The company reported net profit after tax of Rs 1,692 crores for the quarter. The company's net gearing (net debt to equity) stood at l.19x at the end of the quarter as against l.26x at the end of lQ FY2021 and Net Debt to EBITDA stood at 4.14x as against 4.77x at the end of lQ FY2021.
During the quarter, JSW Steel Coated Products registered a production volume of 0.51 million tons and sales volume of 0.61 million tons. Revenue from operations and operating EBITDA for the quarter stood at Rs 3,782 crores and Rs 288 crores respectively. It reported a Net profit after Tax of Rs 172 crores for the quarter.
