Sajjan Jindal-led JSW Steel today reported a multi-fold jump in consolidated net profit at Rs 726.46 crore for the quarter ended on September 30, 2016.
The company had posted a consolidated net profit after tax after share of profit of non controlling interest and share of profits of associates/joint ventures of Rs 56.26 crore in the same period last year.
The consolidated total income from operations increased to Rs 14,420.88 crore in July-September this year, from Rs 11,992.96 crore in the corresponding quarter of previous fiscal, JSW Steel said in a filing to BSE.
“Consolidated Operating EBITDA for the quarter surged by 65 per cent YoY to Rs 2,959 crore,” the filing said.
“The current quarter was marked by ramping up and stabilisation of the recently re-commissioned Blast Furnaces at Vijayanagar and Dolvi. As a result, crude steel production grew by 22 per cent Y-o-Y to 3.98 million tonnes in 2Q FY2017,” the company said.
At the same time, saleable steel sales volume increased by 20 per cent Y-o-Y to 3.84 million tonnes as the company increased exports in a seasonally slow period of demand in the domestic markets (due to monsoon).
Not only this, the Company focused its efforts towards increasing value added & special products sales, which grew by 20 per cent Y-o-Y, and branded steel products’ sales also grew by 11 per cent YoY in this period.
With an objective to make JSW Steel’s equity shares more affordable to small investors and to boost liquidity, its board of directors approved split of equity shares with a face value of Rs 10 each into 10 equity shares of face value of Re 1 each.
“The sub-division of equity shares will be subject to approval of the shareholders and any other statutory and regulatory approvals. There will be no change in the authorised and paid up share capital of the company post this shares split,” the company said.
On the outlook, it said that Indian steel demand growth outlook is gradually improving. Government spending data, thrust on renewable energy sector, better credit deployment in the roads sector, higher than budgeted Railway Capex, and robust port traffic growth point towards an improving demand environment.
Normal monsoon and Seventh Pay Commission awards are likely to drive consumer discretionary spending in the on-going festive season, it said.
In recent months, steel spreads have seen a compression as coking coal prices have surged sharply on the back of tightness in physical markets. As coal supply normalises, coal prices are not likely to sustain at such high levels over the medium term.
At the same time, steel prices in Asia and Europe have started moving up in recent weeks–reflecting a movement in raw material prices.