You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

JSW Steel Q3 PAT surges to Rs 2681 cr

Capital Market 

The steel major's consolidated net profit jumped nearly 13 times to Rs 2681 crore in Q3 December 2020 from Rs 211 crore in Q3 December 2019.

Consolidated revenue from operations grew by 21% to Rs 21,859 crore in Q3 December 2020 from Rs 18,055 crore in Q3 December 2019. The result was announced after market hours today, 22 January 2021.

Profit before tax jumped nearly 9 times to Rs 3,881 crore in Q3 December 2020 from Rs 436 crore in the corresponding period last year. Tax expense soared to Rs 1212 crore in Q3 December 2020 as compared to Rs 249 crore posted in Q3 December 2019.

JSW said that steel industry witnessed sharp demand recovery driven by restocking and higher demand from automotive, machinery, construction and infrastructure sectors aided by increased government spending. The company improved its average capacity utilization level to 91% in Q3 December 2020 from 86% in Q2 September 2020.

JSW Steel's saleable steel sales declined by 5% quarter on quarter to 3.95 million tonnes in Q3 December 2020. Domestic sales volume stood at 3.48 million tonnes, increasing 16% quarter on quarter and 13% year on year. The company said it calibrated its export volumes to 12% of total sales at 0.47 million tonnes.

The company reduced its net debt by Rs 1099 crore in Q3 December 2020. Consolidated net debt to equity stood at 1.29x in Q3 December 2020 as against 1.43x in Q2 September 2020.

Commenting on global outlook, JSW said, "The outlook is positive for broad based growth across investment, manufacturing and services. Re-emergence and mutations of the virus and slower than expected pace of vaccination pose risks to the global growth outlook.

Indian steel demand has picked up well on the back of the strong economic momentum. Domestic steel mills have significantly reduced exports, to cater to this increased demand, and steel imports have increased sharply recently. The declining Covid cases in India and supportive fiscal and monetary policies bode well for stronger growth."

Meanwhile, the board has approved raising long term funds through issuance of non-convertible foreign currency/Rupee denominated senior unsecured fixed rate bonds upto $1 billion, in one or more tranches. The company will utilise the funds to meet capital expenditure, re-financing or any other permitted end use as per RBI's master direction on external commercial borrowings in case of issuance by the company. It will also utilize the funds for capital expenditure or repayment of outstanding loans to the company or general corporate purposes in case of issuance from domestic subsidiaries or overseas subsidiaries, in accordance with applicable.

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).

Shares of JSW Steel fell 4.37% to Rs 375.60 on Friday.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, January 22 2021. 16:36 IST