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.
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