Sajjan Jindal-led JSW Steel posted a consolidated net profit of Rs 2,760 crore for the quarter ended September, beating Street expectations, buoyant on the rise in sales. In comparison, the company had recorded a net loss of Rs 848 a year ago.
During the reporting quarter, revenues rose 6.7% to Rs 44,584 crore from Rs 41,778 crore a year ago, JSW Steel said in a statement.
A consensus estimate by Bloomberg analysts was expecting the firm to post a net profit of Rs 2,419 crore on revenues of Rs 42,540 crore and Ebitda of Rs 7,122 crore.
The firm’s steel sales for the quarter stood at 6.34 million tonne, 11% higher on a quarter-on-quarter basis and 10% up year-on-year. Domestic sales rose to 5.49 million tonne, up 18% q-o-q, driven by strong domestic demand and improvement in product mix. The firm was able to reduce inventories by 0.3 million tonne during the quarter.
JSW Steel’s consolidated crude steel production was at 6.34 million tonne, lower by 1% q-o-q and 12% higher y-o-y. Capacity utilisation was lower at the Ohio, USA, operations due to adverse market conditions, it added.
The firm’s capex spend in India during the quarter under review was Rs 3,701 crore, and Rs 3,816 crore on a consolidated basis. During the first half of FY24, capex spend in India was at Rs 7,795 crore and consolidated capex stood at Rs 7,996 crore (against a planned capex of Rs 18,800 crore in India and Rs 20,000 crore on a consolidated basis.)
During the quarter, its subsidiary Bhushan Power & Steel (BPSL) reported a net profit of Rs 210 crore on revenue from operations of Rs 5,817 crore and operating Ebitda of Rs 745 crore.
JSW Steel Coated Products, another subsidiary, reported a net profit of Rs 113 crore on revenue of Rs 8,965 crore and Ebitda of Rs 411 crore.
Earlier in August, sources told FE that JSW Steel was mulling placing a bid for a majority stake in Canada’s Teck Resources, which is considering various proposals including a partial sale of its steel-making coal business.
JSW Steel has initiated discussions with Teck Resources to acquire anywhere between 20% and 75% stake in the steel-making coal business, also known as metallurgical coal or coking coal business.