PremiumMUMBAI: JSW Steel on Friday reported its highest ever consolidated quarterly net profit of Rs5,904 crore for three months to June, riding on the back of higher product prices. The company had reported a net loss of Rs582 crore in the year-ago period.
Prices of hot-rolled coil rose more than 19% sequentially, or by around ₹10,000 per tonne, during the quarter, according to Edelweiss Securities.
JSW Steel also registered its highest ever quarterly revenue from operations of ₹28,902 crore during the quarter under review, up from Rs11,782 crore in the year-ago period.
Earnings before interest, taxes, depreciation and amortization (Ebitda) came in at Rs10,274 crore.
Saleable steel sales for the quarter stood at 3.47 million tonnes as the company raised exports 14% quarter-on-quarter to partially offset the fall in domestic demand following the second wave of the pandemic.
During the quarter, the steel major spent ₹2,688 crore on capital expenditure. For FY22, capex spend is estimated at over ₹18,000 crore.
Shares of JSW Steel today closed flat at Rs717.40 apiece on the BSE.
The company's board has approved entering into a Power Purchase Agreement for procurement of wind and solar power with Special Purpose Vehicles (SPV) set up by JSW Energy, under the group's captive scheme.
"This will supplement the power requirements at the Vijayanagar, Dolvi and Salem steel complexes, and will also go towards meeting the company’s renewable power obligations. JSW Energy Ltd. will be setting up these renewable power facilities with an installed capacity of 958MW," the company said in a press statement, adding that the group captive scheme allows a waiver of the cross-subsidy surcharge, and requires the procurer to hold 26% equity in the power supplier.
“Accordingly, JSW Steel will invest ₹445 crores, equivalent to 26% of the equity in the respective SPV’s of the renewable projects to be set up by JSW Energy in the respective states of JSW Steel’s plants, as per the group captive norms," it said.
The JSW Steel coated business is commissioning additional color coating lines at Vasind, Kalmeshwar, Vijayanagar, and Srinagar as the color coated steel market is expected to witness strong growth over the next few years.
"The paint companies in India have limited expansion plans in coil coatings that are consumed by the Company’s color coating business. It is important for JSW Steel to strategically secure coil coating supplies for color coated steel, which is a profitable downstream value-added product," the company said adding that its paints division, JSW Paints Private Limited has scaled up in two years and is reliably supplying over 90% of the company’s paint requirements. The facility is strategically located in Western India, with the ability to further scale up the existing facility as well as add more capacities, it said.
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