JSW Steel Records INR 5900 Crore Profit for Apr-Jun 2021 Quarter
26 Jul, 2021, 6:09 am
Indian steel giant JSW Steel Limited has reported strong recovery in April-June 2021 quarter with its quarterly profit surging to highest ever level of INR 5,900 crores
April-June 2021Standalone Performance
Production: Crude Steel - 4.10 million tonnes, down 2% QoQ, up +39% YoY
Saleable Steel Rolled: Flat - 2.67 million tonnes, down 10% QoQ, up 34% YoY
Saleable Steel Rolled: Long - 0.84 million tonnes, down 17% QoQ, up 83% YoY
Semis - 0.10 million tonnes, up 17% QoQ, down 71% YoY
Total Sales - 3.61 million tonnes, down 11% QoQ, up 29% YoY
Highest ever quarterly Revenue from Operations: INR 25,959 crores
Highest ever quarterly Operating EBITDA: INR 9,491 crores
April-June 2021Consolidated Performance
JSW Steel Standalone - 4.10 million tonnes crude steel & 3.61 million tonnes sales
JSW Steel USA Ohio -0.14 million tonnes crude steel & 0.10 million tonnes sales
Bhushan Power & Steel Ltd - 0.69 million tonnes crude steel & 0.48 million tonnes sales
JSW Ispat Special Products Ltd - 0.14 million tonnes crude steel & 0.14 million tonnes sales
JSW Steel Indian Operations including Joint control - 4.93 million tonnes crude steel & 4.23 million tonnes sales
Total Combined Volumes - 5.07 million tonnes crude steel & 4.33 million tonnes sales
Highest ever quarterly Revenue from Operations: INR 28,902 crores
Highest ever quarterly Operating EBITDA: INR 10,274 crores
Highest ever quarterly Net Profit after Tax: INR 5,900 crores
During the quarter, JSW Steel Coated Products, including its subsidiaries, registered a production volume (GI/GL + Tin) of 0.66 million tonnes and sales volume of 0.70 million tonnes. Revenue from Operations and Operating EBITDA for the quarter stood at INR 6,728 crores and INR 963 crores respectively. It reported a Profit after Tax of INR 682 crores for the quarter.
The EAF-based steel manufacturing facility JSW Steel USA Ohio Inc, Acero, in Ohio in USA recommenced operations in March 2021 following an upgrade, and is ramping up well. During Q1 FY2022, it produced 150,539 net tonnes of Slabs. Sales volumes for the quarter stood at 52,391 net tonnes of Slabs and 62,678 net tonnes of HRC. It reported an EBITDA of USD 19.03 million for the quarter against an EBITDA loss of USD 24.18 million in Q4 FY2021.
The Plate & Pipe Mill based in Texas, USA produced 78,648 net tonnes of Plates and 5,685 net tonnes of Pipes, reporting a capacity utilization of 31% and 4%, respectively, during the quarter. Sales volumes for the quarter stood at 67,467 net tonnes of Plates and 4,935 net tonnes of Pipes. It reported an EBITDA of USD 24.45 million for the quarter against EBITDA loss of USDD 6.60 Million in Q4 FY2021.
The Italy based Rolled long products manufacturing facility produced 74,253 tonnes and sold 59,085 tonnes during the quarter. It reported an EBITDA loss of Euro 4.76 million for the quarter compared to an EBIDTA loss of Euro 2.52 Million in-Q4-FY2021.
Dolvi expansion from 5 to 10 mtpa
Coke Oven: commenced production in February 2021
Pellet plant: commissioned in March 2021
HSM: Successfully rolled 1st slab in March 2021
CDQ-2 (Coke Dry Quenching) was commissioned during the quarter
Completion work pertaining to Blast Furnace and Steel Melt Shop underway
On track for integrated operations in Sept 2021
Vijaynagar
CRM-1 complex capacity expansion (0.85 mtpa to 1.80 mtpa) - PLTCM project completed in Q4 FY21; One of the two CGL lines of 0.45mtpa commissioned; Commissioning of 2nd line by Q2 FY22
Colour Coating Line (0.3 mtpa) - Commissioning by 02 FY22
Coke Oven Plant - 1.5 mtpa Coke Oven battery: Commissioning in phases from Q3 FY22
Capacity enhancement of further 1.5 mtpa to support the 5mpta steel-making expansion, Phased commissioning from Q3 FY23
Vasind and Tarapur: Modernisation-cum-capacity enhancement projects
All expansions (except 0.45 mtpa GI/GL at Vasind) are completed
0.25 mtpa Color Coating Line comssioned in May 2021 o 0.45 mtpa GI/GL at Vasind to be commissioned in Q2 FY22
0.5mtpa Continuous Annealing Line at Vasind to be commissioned by March 2022
Second Tinplate line of 0.25 mtpa at Tarapur to be commissioned by June 2022
Outlook “In India, economic activities were impacted by the onset of the second wave of Covid, which has abated sharply in the month of June. As a result, lock-downs and restrictions have eased, and economic activities are picking up across the board, reflecting improved business and consumer sentiments. However, governments are continuing to be cautious about a third wave. India's rural economy is being aided by a good monsoon for the third consecutive year, and a large part of fiscal stimulus measures have been directly focused on increasing rural income and consumption. This is reflected in the recent surge in tractor sales. The Indian industrial sector has also shown a pick up, with peak power consumption hitting several records in 2021 (191GW in end-June). Green shoots are visible in the automotive sector as domestic production volumes witnessed a bounce-back in the month of June, following the Covid-related hit in April and May. A robust residential real estate market since 2020 may signal a turn of the real estate cycle. The government continues to focus on manufacturing, with continued rollout of PLI scheme for various sectors, including speciality steel. Construction and Infrastructure activities are expected to gain momentum in H2 FY2022. Accelerated pace of vaccination in India is leading to improved business sentiment. Ongoing normal monsoons, and the accommodative stance of the RBI are key positives for the economy. Overall, faster ramp-up of vaccination programs and favorable fiscal policies with large budgetary allocations focused on infrastructure are expected to support a strong economic recovery.”
Source - Strategic Research Institute