JSW Steel Reports Historic Performance for 2021-22
Strategic Research Institute
Published on :
30 May, 2022, 6:33 am
India’s largest steel maker JSW Steel Limited has registered its highest ever crude steel production at 17.62 million tonnes in FY 2021-22 and achieved 95% of its sales & production guidance of 17.4 million tonnes and 18.5 million tonnes respectively. Sales of value added and special products accounted for 60% of total sales volumes for the year with branded products sales accounting for 47% of total retail sales. JSW Steel, excluding BPSL, exported 4.57 million tonnes of steel in 2021-22, an increase of 8% YoY and exports accounted for 28% of total sales
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Standalone Performance – 2021-22
Crude Steel production: 17.62 million tonnes, up by 17% YoY
Saleable Steel sales: 16.52 million tonnes, up by 11% YoY
Revenue from operations: INR 118,820 crores, up by 68% YoY
Operating EBITDA: INR 31,868 crores, up by 65% YoY
Net profit after tax: INR 16,702 crores, up by 99% YoY
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Consolidated Performance – 2021-22
Crude Steel production: 19.51 million tonnes, up by 29% YoY
Saleable Steel sales: 18.18 million tonnes, up by 21% YoY
Revenue from operations: INR 146,371 crores, up by 83% YoY
Operating EBITDA: INR 39,007 crores, up by 94% YoY
Net Profit after tax: INR 20,938 crores, up by 166% YoY
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Production Summary 2020-21
JSW Steel Standalone -17.62 million tonnes
Bhushan Power & Steel Ltd* -2.72 million tonnes
JSW Steel USA Ohio - 0.55 million tonnes
JSW Ispat Special Products - 0.58 million tonnes
JSW Steel Indian Operations - 20.92 million tonnes
Total Combined Volumes -21.47 million tonnes
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Sales Summary 2020-21
JSW Steel Standalone - 16.52 million tonnes
Bhushan Power & Steel Ltd* - 2.59 million tonnes
JSW Steel USA Ohio - 0.48 million tonnes
JSW Ispat Special Products - 0.58 million tonnes
JSW Steel Indian Operations - 19.69 million tonnes
Total Combined Volumes - 20.17 million tonnes
*Without eliminating inter-company volumes
*BPSL is a Subsidiary from 1st October 2021
CAPEX – “The Company's CAPEX spent was INR 14,198 crores during 2021-22, against the planned CAPEX spend of INR 18,240 crores. JSW Steel has completed commissioning of downstream projects being Continuous Galvanized lines and Color Coated Line at Vijayanagar. The remaining downstream projects at Vasind and Tarapur expected to be completed in Q1 of 2022-23. The 5 million tonne per annum brownfield expansion at Vijayanagar is progressing well, with civil works underway at the site. Long lead-time items have been ordered, and Letters of Credit established. The project is expected to be completed by 2023-24. The expansion at BPSL to 3.5 million tonne per annum is progressing well and is expected to be completed by Q2 of 2022-23. Long lead-time items have been ordered for the Phase-ll expansion from 3.5 million tonne per annum to 5 million tonne per annum and the project is expected to be completed by 2023-24.”
Outlook – “The ongoing Russia-Ukraine crisis and impact of the pandemic has led to a severe impact on global supply chains, which in turn has resulted in widespread volatility in the commodities market and given rise to inflationary pressures across most economies. Hence, even as the global economy grew by 6.1% in CY 2021, the International Monetary Fund has moderated its CY 2022 growth forecast to 3.6%, from 4.4% in January. Even as growth estimates have been revised downwards, India is expected to be the fastest growing major economy in the world. Withdrawal of COVID restrictions and normalization of the economy has led to a broad based recovery in most sectors. Infrastructure and manufacturing initiatives by the government are supportive of growth, and healthy tax collections provide the government with enhanced flexibility. Realignment of global supply chains will continue to provide opportunities to grow exports. Outlook for auto sales, especially PVs and M&HCV, remains healthy. Real estate market remains strong despite rising interest rates. Healthy power consumption growth is expected to aid addition of renewables. However, high inflation, energy costs, and rate hikes by the RBI and global central banks will be dampeners to growth.”
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Production Guidance for 2022-23
Consolidated Indian operation - 23.60 million tonnes
JSW Ispat Special Products - 0.70 million tonnes
Indian Operations - 24.30 million tonnes
JSW Steel USA Ohio - 0.70 million tonnes
Total Combined Volumes - 25.00 million tonnes
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Sales Guidance for 2022-23
Consolidated Indian operation - 22.60 million tonnes
JSW Ispat Special Products - 0.70 million tonnes
Indian Operations - 23.30 million tonnes
JSW Steel USA Ohio - 0.70 million tonnes
Total Combined Volumes - 24.00 million tonnes