JSW Steel reports 14x spike in Q3 consolidated net profit at Rs 2,669 cr

Company plans commissioning multiple projects in Q4

JSW Steel has reported Rs 2,669 crore consolidated net profit for the third quarter of financial year 2020-2021. This is a multifold increase over the ₹ 187 crore consolidated bottomline reported by the company in the same months of the previous financial year.

Consolidated total income during the period under review stood at Rs 22,006 crore, up from Rs 18,182 crore in the same months of fiscal 2019-2020.

Shares of the company closed down 4.37 per cent to Rs 375.60 a scrip on Friday.

Sharing an optimistic outlook regarding the sector, JSW Steel said, "Indian steel demand has picked up well on the back of strong economic momentum. Domestic steel mills have significantly reduced exports to cater to this increased demand."

Commenting on the demand drivers, the company said, "There has been a strong growth in the automotive sector, notably in passenger vehicles and two-wheelers, and tractors due to strong rural demand. The recovery in residential real estate and continued traction in commercial real estate is a bright spot, with scope for structural revival of the sector."

JSW also said that it will be commissioning multiple projects soon.

'The expansion project at Dovi from 5 million tonne per annum (mtpa) to 10 mtpa steel making capacity is nearing completion, with majority of operations to be commissioned in the current quarter. Full integrated operations and stabilization will take place in first quarter of fiscal 2021-2022," the company said.

Commenting on the Vijaynagar expansion, JSW said, "One out of two Continuous Galvanising Lines (CGL) has been commissioned, and the second will be commissioned by first quarter of fiscal 2021-2022. The 8 MTPA Pellet plant is under commissioning, with heating in progress."

On Vasind and Tarapur, JSW said, "All expansions (except 0.45 MTPA CGL at Vasind) are under commissioning, and will be fully commissioned by March 2021. The 0.45 MTPA CGL is to be commissioned in the first quarter of fiscal 2021-2022."