On a consolidated basis, the steel major's net profit declined 37.77% to Rs 1,593 crore on 9.63% increase in revenue from operations to Rs 19,264 crore in Q2 September 2020 over Q2 September 2019.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.
Profit before tax (PBT) surged 264% to Rs 2,505 crore in Q2 September 2020 over Q2 September 2019. Total tax expense stood at Rs 910 crore in Q2 September 2020 compared with tax rebate of Rs 1,848 crore in the same period last year. The result was announced after market hours today, 23 October 2020.
JSW Steel's saleable steel sales for the quarter stood at 4.15 million tonne, rising 49% quarter on quarter (QoQ), triggered by revival in domestic demand. The volume of value added & special steel sales was at 51% of the total sales propelled by an increase in sales to auto and coated products segments. The retail sales increased by 177% QoQ supported by increase in branded sales.
Following the 66% capacity utilisation in the first quarter of fiscal year 2021 marked by nationwide lockdown, disrupted supply chains and steep drop in demand, second quarter witnessed a sharp rebound in business sentiments and a significant improvement in the domestic economic activities spurred by slew of monetary and fiscal initiatives, JSW Steel said in a press release.
The company achieved an average capacity utilisation level of 86% for the quarter. This is in line with that of pre-Covid levels of 85% achieved in the second quarter of the previous year. Crude steel production during the period stood at 3.85 million tonnes in Q2 September 2020.
JSW said crude steel production and saleable steel volumes for first half of FY2021 stood at 6.81 million tonnes and 6.92 Million tonnes respectively. The company assured that it is on course to meet the annual guidance of 15 million tonnes of saleable steel.
Shares of JSW Steel fell 1.44% to close at Rs 321.05 on BSE.
JSW Steel is a flagship company of the JSW Group, an integrated steel manufacturer in India with an installed steel-making capacity of 18 million tonnes per annum (MTPA).
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