During the quarter, crude steel production rose 5% year-on-year to 4.31 million tonnes (mt) while sales of saleable steel stood at 4.22mt, up 7% over the same period. Photo: Reuters
New Delhi: JSW Steel Ltd on Wednesday reported a net profit of Rs2,879 crore for the March quarter, nearly triple the Rs1,008 crore it reported year ago on higher demand and better prices.
During the quarter, crude steel production rose 5% year-on-year to 4.31 million tonnes (mt) while sales of saleable steel stood at 4.22mt, up 7% over the same period.
For the full financial year, the steel-maker reported its highest ever consolidated net profit of Rs6,113 crore, up 76% from Rs3,467 crore the previous year.
JSW Steel joint managing director and chief financial officer Seshagiri Rao told reporters that alterations to the product and geography mix over the past quarter boosted financial numbers. Sales of value-added and special steel products increased 14% year-on-year and its share of total shipments for the quarter was at 57%.
The company’s net debt stood at Rs38,019 crore at the end of FY18; net debt-to-equity ratio was 1.38.
JSW Steel is on track to completing its planned capacity expansion strategy to increase production capacity from the current 18mt to 24.7mt by March 2020, Rao said. “Our capex guideline was Rs26,815 crore; however, we have now increased this by another Rs17,600 crore,” he said.
“The board of directors has approved key new projects, including enriching product mix with 3.2mt of additional downstream capacity and backward integration projects, like a coke oven plant, which will reduce costs,” Rao explained. “Some of these projects will be commissioned in FY19; we foresee cost savings of about Rs2,000 crore from these measures this year.”
The cumulative capital expenditure pipeline over the next three years will be Rs39,715 crore.
JSW Steel has been selected as the highest bidder by lenders for the stressed steel-maker Monnet Ispat. Its resolution proposal is currently pending approval by the National Company Law Tribunal.
The company expects Indian steel consumption to grow roughly 7% in FY19, with demand growing fastest within the automotive and appliances sectors. Its saleable steel sales outlook for the year is 16mt, 2.5% higher than the FY18 figure of 15.62mt.
Shares of JSW Steel rose 0.87% to close at Rs336.65 on the BSE on Wednesday.