Mumbai (India): JSW Steel Limited Thursday reported its results for the Second Quarter ended 30th Sep, 2021.
During the quarter, JSW Steel operated at a healthy capacity utilization of 91% across its steel-making operations. Saleable Steel sales for the quarter stood at 3.83 million tonnes (Indian operations excluding JVs), an increase of 10% QoQ. As a result, the company registered its highest ever consolidated quarterly Operating EBITDA of ₹10,417 crores, with an EBITDA margin of 32.0%. In the month of October’21, the Company commenced integrated operations of its 5 MTPA brownfield expansion at Dolvi.
JSW Steel reported Crude Steel Production of 4.10 million tonnes, with average capacity utilization of 91% for the quarter, similar to Q1 FY2022, mainly due to planned shutdown at Vijayanagar for campaign repairs of two of its convertors and annual shutdown of one of the blast furnaces at Salem.
Sales of Saleable Steel for the quarter was 3.79 million tonnes, higher by 5% QoQ, as Q1 FY2022 was impacted by the second wave of Covid in India. Q2 FY2022 sales were affected by some inventory build-up due to start of the Company’s new downstream facilities and increase in inventories at the ports. Exports during the quarter increased by 26% QoQ as domestic demand was subdued due to monsoon.
The Company registered its highest ever quarterly Revenue from Operations at ₹28,000 crores, an increase of 8% QoQ led by improved product and market mix.
The Company achieved quarterly Operating EBITDA at ₹8,673 crores, lower by 8.6% QoQ, with an EBITDA margin of 31.0%. However, on a YoY basis, EBIDTA was higher by 108%. The EBITDA margin was lower QoQ primarily due to elevated raw material prices of iron ore, coking coal and other key inputs like power, natural gas and ferroalloys. The Other Income includes ₹702 crores recognition of fair valuation gain on re-measurement of optionally fully convertible debentures held by the Company in one of the Joint Ventures. Consequently, the company reported quarterly Profit after Tax of ₹5,383 crores, higher by 2.4% QoQ.
Key Highlights for Q2 FY2022:
Crude Steel production: 4.10 million tonnes
Saleable Steel sales: 3.78 million tonnes
Highest ever quarterly Revenue from Operations: ₹28,000 crores
Quarterly Operating EBITDA: Rs 8,673 crores
Highest ever Quarterly Net Profit after Tax: Rs 5,393 crores
Highest ever quarterly Revenue from Operations: Rs 32,503 crores
Highest ever quarterly Operating EBITDA: Rs10,417 crores
Highest ever quarterly Net Profit after Tax: Rs 7,179 crores
Net Debt to Equity : 0.92x and Net Debt to EBITDA : 1.58x