Sajjan Jindal-led JSW Steel on Tuesday reported a consolidated net profit of Rs 730 crore in the quarter ended December against a loss of Rs 709 crore in the same quarter last year on higher inventory gains, and better operational performance.
The company that holds 14% market share in the doemstic steel market reported an Ebitda per tonne of Rs 7,711 during the period, where the inventory gains contribution was Rs 500 per tonne, Sheshagiri Rao, joint managing director and group CFO said.
The company had a highest ever total income from consolidated operations of R15,312 crore despite weak global and domestic demand scenario. Earnings before interest tax, depreciation and amortisation was around R2,867 crore.
“We focused on enriching the product mix and increased the sales of value added products, which also formed the bulk of our exports,” Rao said.
The demonetisation of high-end currencies by the government impacted retail sales of the company by around 12% sequentially, and around 4% on year. Going ahead, the company sees the impact to be still there in the January-March quarter.
“However, we compensated the impact by selling to the original equipment manufacturers,” said Rao.
Total steel production and the steel sales grew 43% during the quarter. The company produced around 3.86 million tonnes of steel and sold around 3.64 million tonnes.
The company’s export basket constitutes around 21% of the sales, while 79% is consumed within India.
Sales of rolled flat products rose by 50% on year to 2.79 million tonnes while long products rose 12% during the quarter. “We focused on the flat products as the realisations were higher in this segment and reduced focus on the semi-finished products as realisation were lower. Also our focus was more in south and west India, where the demand was comparatively higher,” Rao added.
The company that aims to have 40 million tonnes per annum target plans to grow organically and inorganically in coming future and is actively pursuing acquisition targets in the market.