JSW Steel Q3 Results: Profit Falls Despite Record Crude Steel Output

JSW Steel Ltd. saw its net profit for the quarter ended December decline sharply in consolidated terms, despite registering record crude steel production.

The Indian steel major posted a fall of 89% in its consolidated profit for the period under review at Rs 490 crore, against an estimate of Rs 1,104.73 crore, it said in an exchange filing on Friday.

Revenue from operations increased 3% to Rs 39,134 crore, compared to Bloomberg estimates of Rs 39,601.07 crore.

Profitability suffered as Ebitda dropped 50% to Rs Rs 4,547 crore, as compared to an estimate of Rs 4,416.01 crore.

JSW Steel Q3 FY23 Highlights (YoY)

• Revenue rises 2.79% to Rs 39,134 crore as compared to Rs 38,071 in the same period last year, and a Bloomberg estimate of Rs 39,601.07 crore.

• Ebitda down 50.21% at Rs 4,547 crore vs Rs 9,132 crore over the same period last year. Analysts had pegged it at Rs 4,416.01 crore.

• Net profit declined 88.75% to Rs 490 crore vs Rs 4,357 crore last year. Analysts had forecast it at Rs 1,104.73 crore.

• Ebitda margin at 11.62% vs 23.99%, and an estimate of 11.2%.

The drop in profits came despite the company reporting the highest-ever crude steel production of 6.14 million tonnes during the December quarter, the company said in its statement.

Saleable steel sales for the period increased 21% year-on-year to 5.63 million tonnes, drive by higher domestic sales.

JSW Steel's consolidated net debt to equity ratio stood at 1.09 times at the end of the December quarter, against 1.04 times in the previous quarter.

The net debt to Ebitda ratio for the quarter was 3.51 times, against 2.7 times at the end of the previous quarter.