JSW Steel on Friday posted fiscal fourth quarter profit at Rs 3,741 crore, up 11.9 per cent in comparison to Rs 3,343 crore in the same quarter last year, beating estimates. It posted revenue from operations at Rs 46,962 crore as against Rs 46,895 crore in the corresponding quarter last year. According to a CNBC TV18 poll, JSW Steel was expected to record fourth quarter profit at Rs 2,110 crore and revenue at Rs 45,720 crore. The company’s total income for the quarter stood at Rs 47,427 crore and expenses was at Rs 43,170 crore. The EBITDA stood at Rs 7,939 crore for Q4FY23. The Board also recommended a final dividend of Rs 3.40 (340 per cent) per fully paid-up equity share of Re1 each for the year ended March 2023.
JSW Steel’s performance
JSW Steel recorded average India capacity utilization of 96 per cent in the fourth quarter, with crude steel production recorded at 6.58mt in Q4, steel sales of 6.53mt in the quarter and captive iron ore self-sufficiency stood at 41 per cent for standalone operations for FY23.
In terms of India operations, JSW Steel posted record total, domestic and auto grade sales with consolidated sales up 8 per cent on-year supported by ramp up at “Dolvi Phase-II and BPSL expansion, as well as recovery in exports post removal of export duties in Nov’22”. VASP volumes, it said, were up 14 per cent on-year with the share of VASP in total sales at 60 per cent. “Supplies to the auto sector were up 19 per cent YoY and 7 per cent QoQ vs auto industry volumes of 12 per cent YoY and 14 per cent QoQ. Sales to appliances sector up 50 per cent YoY and 88 per cent QoQ. Tinplate sales up 5 per cent YoY and 22 per cent QoQ,” it said in a regulatory filing.
JSW Steel’s retail volumes in Q4FY23 was up 15 per cent on-year driven by healthy demand. It boasts a distribution channel of 2,066 points with 663 JSW Shoppe spread across urban areas and 1,032 JSW Shoppe Connect in semi-urban and rural areas, and 371 distributors.
Growth outlook in a ‘resilient economy’
JSW Steel maintained that with Indian economy being resilient, supported by manufacturing, services and govt. Capex and cooling inflation and RBI pause being the positives, while global slowdown remains a risk, the growth outlook for the company looks promising. Key monitorables, it said, for rural demand is the monsoon in light of El Nino. Besides, discussed budget on infra, manufacturing and defense is positive for steel consumption. Also, fiscal position, it added, is benefiting from lower lower energy prices, fertilizer subsidies and strong tax collections.