JSW Steel on Friday posted over 85 per cent year-on-year fall in its consolidated net profit at Rs 839 crore during the June 2022 quarter, dragged by higher expenses.
The company’s profit stood at Rs 5,900 crore during the April-June period of the preceding 2021-22 fiscal, JSW Steel said in a regulatory filing.
However, its total income during April-June 2022 rose to Rs 38,275 crore from Rs 29,100 crore in the year-ago quarter.
Expenses were higher at Rs 36,977 crore as against Rs 20,804 crore in April-June 2021.
On a standalone basis, JSW Steel said its net profit was at Rs 956 crore, down from Rs 5,258 crore a year ago.
The standalone income rose to Rs 31,338 crore as against Rs 26,159 crore in the same quarter of FY22.
Its expenses jumped to Rs 29,960 crore, from Rs 18,309 crore in April-June last fiscal.
In a separate statement, the company said its consolidated steel output during the April-June 2022 period was at 5.77 million tonnes (MT), while sales were at 4.49 MT.
The standalone crude steel production was at 5.00 MT, up 22 per cent y-o-y. Sales on standalone basis were 4.03 MT for the quarter, up 12 per cent from year-ago period.
During the quarter, its subsidiary JSW Steel Coated Products registered a production volume of 0.68 MT and 0.68 MT sales. The subsidiary reported a loss after tax of Rs 209 crore for the quarter.
Bhushan Power and Steel Ltd (BPSL) registered crude steel production of 0.61 MT and sales volume of 0.48 MT. BPSL reported a profit after tax of Rs 221 crore for the June 2022 quarter.
In Ohio, JSW Steel USA Ohio Inc, which operates the EAF-based steel manufacturing facility, produced 1,05,997 net tonnes of Hot Rolled Coil (HRC) and 1,74,398 net tonnes of slabs during the quarter. Sales volumes for the quarter stood at 1,08,365 net tonnes of HRC and 65,749 net tonnes of slabs. It reported an EBITDA of USD 1.14 million for the quarter.
The company’s plate and pipe mill based in Texas, USA produced 87,213 net tonnes of plates and 4,658 net tonnes of pipes, reporting a capacity utilisation of 37 per cent and 3 per cent, respectively, during the quarter.
While sales volumes for the quarter stood at 81,788 net tonnes of plates and 4,663 net tonnes of pipes, it reported an EBITDA of USD 33.06 million.
JSW Steel (Italy) S.r.l. (Aferpi) rolled long products manufacturing facility produced 96,297 tonnes and sold 86,772 tonnes during the quarter. It reported an EBITDA profit of euro 4.0 million for the quarter JSW Steel said its 5-MTPA brownfield expansion at Vijayanagar is progressing well, with civil works underway at the site. The project is expected to be completed by the end of FY24.
The remaining downstream projects at Vasind and Tarapur are expected to be completed in Q2 FY23.
JSW Steel is the flagship business of the USD 22-billion diversified JSW Group, which has its presence in sectors such as energy, infrastructure, cement, paints, sports and venture capital.