The steelmaker posted a net profit of Rs 2,669 crore for the December quarter, compared with Rs 187 crore a year earlier. In the September quarter of FY 21, it had reported a 37 per cent fall in net profit at Rs 1,595 crore.
Consolidated revenue from operations rose 21 per cent year-on-year to Rs 21,859 crore, while standalone revenue grew 22 per cent to Rs 19,239 crore. Operating earnings before interest, tax and depreciation expanded 142 per cent to Rs 5,946 crore.
“On the back of this strong demand environment, JSW Steel improved average capacity utilisation level of 91 per cent for the quarter vs. 86 per cent in 2Q FY 2021,” the company said in a statement.
During the quarter under review crude steel production during the period stood at 4.08 million tonnes and standalone saleable steel sales at 3.90 million tonnes.
“Indian steel demand has picked up well on the back of the strong economic momentum. Domestic steel mills have significantly reduced exports, to cater to this increased demand, and steel imports have increased sharply recently,” the company said in its media statement.
The company achieved the highest ever quarterly domestic volume of sales of flat products, propelled by strong demand of coated products.
“The proportion of higher margin Value-added & and special steel sales increased from 51 per cent in 2Q FY2021 to 57 per cent for 3Q FY2021,” the company’s statement said.
While the India operations reported the highest ever net profit in almost 10 quarters, the company’s overseas businesses in the US and Italy reported Ebitda losses.
The US based Plate and Pipe Mill in Texas facility reported an Ebitda loss of US $ 8.45 million for the quarter, US based HR coil manufacturing facility, Acero, reported a loss of US $ 21.26 million and the Italy based business reported an Ebitda loss for the quarter was US$ 21.26 million.
The company reduced consolidated Net Debt by Rs 1,099 crore in the quarter, and the net debt to Ebitda at 3.53x (as against 4.73x at the end of 2Q FY2021).
The company commenced production from the last of the three recently acquired mines in Karnataka on 10th December 2020.
“Overall volume from captive mines in the third quarter constituted 49 per cent of iron ore receipts of the Company,” the company said in the statement.
The company said that the The expansion project at Dovi from 5 MTPA to 10 MTPA steel making capacity is nearing completion, with the majority of operations to be commissioned in the current quarter. In Vijaynagar one out of two continuous galvanising lines (CGL) has been commissioned, and the second will be commissioned by the first quarter of FY 22.
“There has been a strong growth in the automotive sector, notably in PV and 2-wheelers, and tractors due to strong rural demand. The recovery in residential real estate and continued traction in commercial real estate is a bright spot, with scope for structural revival of the sector,” the company said.