JSW Steel on Friday posted a more than 85% year-on-year decline in consolidated net profit to ₹839 crore during the June 2022 quarter, dragged by higher expenses.
The company’s profit stood at ₹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 ₹38,275 crore from ₹29,100 crore in the year-earlier quarter.
Expenses were higher at ₹36,977 crore as against ₹20,804 crore in April-June 2021.
On a standalone basis, JSW Steel said its net profit was at ₹956 crore, down from ₹5,258 crore a year earlier.
The standalone income rose to ₹31,338 crore as against ₹26,159 crore in the same quarter of FY22.
Expenses jumped to ₹29,960 crore, from ₹18,309 crore in April-June of 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% y-o-y. Sales on a standalone basis were 4.03 MT for the quarter, up 12% from the year-earlier 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 ₹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 ₹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 $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% and 3%, 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 $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 $22-billion diversified JSW Group, which has its presence in sectors such as energy, infrastructure, cement, paints, sports and venture capital.
