JSW Steel Q2 consolidated net profit rises 350% to Rs 7,170 crore

Sajjan Jindal-led JSW Steel today reported highest ever consolidated net profit of Rs 7,179 crore in the quarter ending September 30, 2021, up 350 percent from same period last year on increased revenue.

The company also reported highest ever quarterly revenue from operations at Rs 32,503 crore and highest ever quarterly operating EBITDA of Rs 10,417 crore.

Net sales of the company stood at Rs 31,909 crore in the September quarter, up 71 percent from corresponding period last year and up 12 percent from preceding quarter.

According to Bloomberg estimates, the company’s net sales in September quarter were expected to be at Rs 32,108 crore, while the net profit was seen at Rs 5,744 crore.

Saleable steel sales for the quarter stood at 3.83 million tonne (Indian operations excluding JVs), an increase of 10 percent sequentially. The company enhanced exports by 22 percent sequentially to partially offset the fall in domestic demand due to seasonality, said the company release.

The company registered strong Value-added & Special Products (VASP) volume, with share of VASP at 60 percent as against 61 percent in Q1 FY2022 and 51 percent in Q2 FY2021, driven by increased domestic sales to automotive, solar and appliance segments, it said.

VASP volumes were also boosted by robust export demand for coated products.

During the quarter, the performance of Bhushan Power & Steel Ltd. (BPSL) improved significantly, driven by an increase in sales volumes. The share of profit from JVs for the quarter stood at Rs 603 crores, an increase of 86 percent quarter-on-quarter from Rs 323 crore in Q1 FY22.

With regard to stake in BPSL, the company said it exercised the conversion option of its Optional Fully Convertible Debenture (OFCD) held in Piombino Steel Limited, the SPV holding 100 percent of the shares of BPSL. Due to this conversion of the OFCD’s into equity, JSW Steel now holds a controlling stake of 83.28 percent in BPSL through the SPV, effective from 1st October 2021.

The company reported highest ever quarterly operating earnings before interest, taxes, depreciation and ammortisation (EBITDA) at Rs 10,417 crore in September quarter with net debt to equity going to 0.92x as against 1.04x at the end of Q1 FY2022 and net debt to EBITDA at 1.58x as against 1.89x at the end of Q1 FY2022, said JSW Steel.

During the quarter, the company spent Rs 3,639 crores on capex, as against a total planned capex spend of Rs 18,240 crore for FY2022. 

Alongside, the company commenced integrated operations of the Dolvi's five million tonne brownfield expansion on October 19 2021.

The five million tonne brownfield expansion at Vijayanagar is progressing well, with civil works underway at the site, said JSW Steel. Also, the downstream expansion projects at Vijayanagar, Vasind and Tarapur are in advanced stages of implementation.