JSW Steel net profit up 29% in Q2

Steel producer JSW Steel on Tuesday reported a 29 per cent rise in its consolidated net profit at Rs 836 crore during the quarter ended September 30 in the current fiscal, as compared to Rs 647 crore in the year-ago period.

Its total revenue from operations, during the quarter under review, was at Rs 16,818 crore, up by 17 per cent from Rs 14,421 crore in the same period last year.

Operating Ebitda increased by 4 per cent year-on-year to Rs 3,036 crore, implying a margin of 18.1 per cent.

Aided by an increase in domestic demand and favourable international markets during the early part of this quarter, the company achieved its highest ever consolidated quarterly saleable steel sales of 3.96 million tonne, it said in a statement.

The steel maker also said as the impact of Goods and Services Tax (GST) rollout on channel sales has begun to stabilise, its consolidated domestic sales volume increased by 12 per cent quarter-on-quarter (QoQ) while retail sales have grown by 24 per cent on QoQ basis.

With better international demand, the company focused on increasing exports volumes which surged by 33 per cent QoQ.

The firm as a part of growth strategy proposed to set up a steel plant in Odisha and its board approved to form a wholly owned subsidiary by the name of JSW Utkal Steel Ltd or such other names as may be approved by the Registrar of Companies with an initial investment of up to Rs 150 crore to undertake preliminary studies and for other costs.

The steel maker said, on a standalone basis, its crude steel production during the quarter stood at 3.94 million tonne, down by one per cent from 3.98 million tonne.

Production was impacted by continued water shortage in south India, particularly in Tamil Nadu, as well as availability of iron ore at Vijayanagar, it added.

--IANS

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