JSW Steel’s profit doubles on revenue growth, beats estimates
JSW Steel's profit more than doubled year-on-year to Rs 4,696 crore in the June quarter. Robust revenue growth and lower finance costs aided the company's strong financial performance. Consolidated revenue from operations rose around ten percent o...
By Nikita Periwal, ET Bureau |
Agencies
MUMBAI – JSW Steel’s consolidated profit for the June quarter more than doubled year-on-year to Rs 4,696 crore, aided by robust revenue growth, higher volumes, and lower finance costs. The bottomline was higher than Street expectations.
The country’s largest producer of steel reported its earnings during market hours on Friday, and its shares climbed 1.4% on the BSE at Rs 1,238.35.
While higher compared to the previous year, the bottomline was 75% lower sequentially as the March quarter benefited from one-time gains of Rs 17,888 crore.
Consolidated revenue from operations for the June quarter rose around 10% on year to Rs 47,364 crore; the year-on-year revenue growth stood at 19% on a proforma basis after adjusting the sales of Bhushan Power in the comparable quarter. The entity was de-consolidated from JSW Steel from March earlier this year.
Revenue growth for the steelmaker was boosted by a combination of higher steel prices and a 4% growth in consolidated sales volumes to 6.25 million tonne for the quarter.
Total expenses for the quarter rose less than 4% on year to Rs 41,830 crore -- relatively lower than the revenue growth for the period – helped by a near 23% drop in finance costs to Rs 1,712 crore. JSW Steel’s consolidated net debt is down to Rs 46,157 crore at the end of June from Rs 53,870 crores a quarter ago.
Net Debt to Equity ratio at the end of the quarter stood at 0.42 times, down from 0.51 times at the end of the March quarter, while the net debt to EBITDA ratio stood at 1.46 times, down from 1.81 times.
The revenue growth and relatively lower growth in expenses boosted the consolidated earnings before interest, tax, depreciation and amortization for the company, which rose 38% on year to Rs 9,383 crore. The EBITDA made on each tonne of steel rose 23% on year to Rs 14,990 during the quarter.
The company retained its guidance of spending Rs 22,000 – 24,000 on capital expenditure this year, and has spent Rs 4,869 crores during the quarter.
The country’s largest producer of steel reported its earnings during market hours on Friday, and its shares climbed 1.4% on the BSE at Rs 1,238.35.
While higher compared to the previous year, the bottomline was 75% lower sequentially as the March quarter benefited from one-time gains of Rs 17,888 crore.
Consolidated revenue from operations for the June quarter rose around 10% on year to Rs 47,364 crore; the year-on-year revenue growth stood at 19% on a proforma basis after adjusting the sales of Bhushan Power in the comparable quarter. The entity was de-consolidated from JSW Steel from March earlier this year.
Revenue growth for the steelmaker was boosted by a combination of higher steel prices and a 4% growth in consolidated sales volumes to 6.25 million tonne for the quarter.
Total expenses for the quarter rose less than 4% on year to Rs 41,830 crore -- relatively lower than the revenue growth for the period – helped by a near 23% drop in finance costs to Rs 1,712 crore. JSW Steel’s consolidated net debt is down to Rs 46,157 crore at the end of June from Rs 53,870 crores a quarter ago.
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Net Debt to Equity ratio at the end of the quarter stood at 0.42 times, down from 0.51 times at the end of the March quarter, while the net debt to EBITDA ratio stood at 1.46 times, down from 1.81 times.
The revenue growth and relatively lower growth in expenses boosted the consolidated earnings before interest, tax, depreciation and amortization for the company, which rose 38% on year to Rs 9,383 crore. The EBITDA made on each tonne of steel rose 23% on year to Rs 14,990 during the quarter.
The company retained its guidance of spending Rs 22,000 – 24,000 on capital expenditure this year, and has spent Rs 4,869 crores during the quarter.
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