JSW Steel Ltd on Thursday recorded its third quarter profit for the financial year 2023-24 at Rs 2415 crore, up 392.9 per cent in comparison to Rs 490 crore during the third quarter of FY23, surpassing estimates. It posted revenue from operations at Rs 41,940 crore, up 7.2 per cent in comparison to Rs 39,134 crore during the corresponding quarter of previous year. According to a CNBC TV18 poll, JSW Steel was expected to report Q3FY24 profit at Rs 1745 crore and revenue was estimated to be at Rs 42,225 crore. The company EBITDA stood at Rs 7180 crore.
JSW Steel stated that the consolidated crude steel production for the quarter stood at 6.87 million tonnes, up 12 per cent on-year. The strong performance, it said, was driven by capacity utilization rising to 94 per cent during the quarter vs 89 per cent in Q2FY24 at the Indian operations. The company had taken certain maintenance shutdowns at India operations during Q2FY24. Capacity utilization, it added, also improved at the Ohio, USA operations due to better demand scenario.
Steel sales for the quarter stood at 6.00 million tonnes, higher by 7 per cent YoY. Domestic sales at 5.27 million tonnes was up by 2 per cent on-year. While volumes declined QoQ, the OEM and Industrial volumes were strong, up 12 per cent YoY, with highest quarterly sales to OEM and Industrial customers, and Automotive, Renewable and Packaging segments. Retail sales were particularly impacted during the quarter on higher imports and channel destocking. Exports, meanwhile, at 0.55 million tonnes fell 20 per cent QoQ on subdued global markets and constituted 9 per cent of sales from the Indian operations.
JSW Steel’s subsidiaries’ Q3 performance
Bhushan Power and Steel (BPSL): During the quarter, BPSL registered crude steel production of 0.86 million tonnes and sales volume of 0.70 million tonnes. Revenue from operations stood at Rs 5,030 crore and profit was at Rs 260 crore.
JSW Steel Coated Products: During the quarter, JSW Steel Coated Products, including its subsidiaries, registered a production volume of 0.95 million tonnes and sales volume of 0.94 million tonnes. Revenue from operations stood at Rs 7,767 crore. The subsidiary reported a net loss of Rs 52 crore for the quarter.
JSW Steel USA Ohio: The EAF-based steel manufacturing facility in Ohio, USA produced 2,67,666 net tonnes of slabs during the quarter. Sales volume during the quarter stood at 56,355 net tonnes of HRC and 1,46,383 net tonnes of Slabs.
US Plate & Pipe Mill: The Plate & Pipe Mill based in Texas, USA produced 97,829 net tonnes of Plates and 7,219 net tonnes of Pipes, reporting a capacity utilization of 40 per cent and 5 per cent respectively during the quarter.
Italy operations: The Italy based rolled long products manufacturing facility produced 1,01,660 tonnes and sold 83,818 tonnes of rolled products during the quarter