JSW Steel Q3 PAT down 90% YoY to Rs 474 crore

JSW Steel reported 90% drop in consolidated net profit to Rs 474 crore in Q3 FY23 from Rs 4,516 crore in Q3 FY22.

Revenue from operations rose by 3% YoY to Rs 39,134 crore during the quarter.

Operating EBITDA fell by 50% to Rs 4,547 crore in Q3 FY23 from Rs 9,132 crore in Q3 FY22.

Profit before tax in Q3 FY23 stood at Rs 978 crore, down by 84% from Rs 6,261 crore in Q3 FY22.

Cash & cash equivalent was Rs 11,176 crore at the December 2022 quarter. Net debt aggregated to Rs 69,498 crore as on 31 December 2022 as against Rs 66,312 crore as on 31 December 2021.

The company's net debt to equity was at 1.09 times and net debt to EBITDA was at 3.51 times as on 31 December 2022.

During the quarter, the combined crude steel production of JSW Steel was 6.24 million tonnes, sequentially higher by 10%, mainly due to the ramp-up at 5 MTPA Dolvi Phase-II expansion which achieved capacity utilisation of 85% as against 80% in Q2 FY23.

The re-starting of facilities at JSW (spat Special Products (JISPL) after a maintenance shutdown that had commenced in Q2 FY23, and ongoing ramp-up of BPSL operations after expansion from 2.75 MTPA to 3.5 MTPA capacity, also contributed to higher production.

Saleable steel sales amounted to 5.63 million tonnes during the period under review.

The domestic steel industry witnessed demand growth with consumption at 29.86 million tonnes in Q3 FY23, up by 10.5% YoY and 6% QoQ, supported by a better demand from the infrastructure sector.

During Q3 FY23, exports (excluding semis) from India were at 1.14 million tonnes, lower by 55.7% YoY and 19.2% QoQ. The export duties on finished steel products that were imposed in May 2022, were rolled back on 19th November 2022; this should improve the competitiveness of the Indian steel industry in the global markets going forward.

"The rural economy is expected to recover on the back of a better winter crop, elevated reservoir levels and falling inflation. The outlook for residential real estate, autos and renewables remains strong. However, the global slowdown and geopolitical risks remain key headwinds, the company said in its outlook.

JSW Steel ls the flagship business of the diversified, JSW Group, is India's leading integrated steel company with a steel-making capacity of 28.5 MTPA in India and the USA (including capaclties under joint control).

The scrip fell 2.47% to end at Rs 740.95 on the BSE today.

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