JSW Steel Q3 net profit jumps 69.2% to Rs4,516 crore

JSW Steel on Friday reported a 69.2 per cent year-on-year jump in consolidated net profit, at Rs4,516 crore, for fiscal third quarter ended 31 December 2021. The company had posted a net profit of Rs 2,669 crore in the corresponding quarter of the previous fiscal.

Consolidated total revenue of the company for the quarter stood at Rs38,071 crore against Rs21,859 crore for the same period year ago. It also recorded consolidated operating profit (or EBITDA) of Rs9,132 crore for the October-December quarter.
During the quarter, JSW Steel reported consolidated crude steel production of 5,21 million tonne (excluding JSW Ispat Special Products Ltd) showing a growth of 22 per cent QoQ. Steel sales for the quarter stood at 4.63 million tonne (excluding JSW Ispat Special Products Ltd) showing an increase of 16 per cent QoQ.
During the quarter, the share of value-added & special products (VASP) rose to 62 per cent from 60 per cent in the September quarter and 57 per cent in the year-ago quarter, showing a strong VASP volume.
The steel maker’ss performance was boosted by a significant improvement in price realisation as compared to the year-ago quarter. The benefits of the price hikes effected over the course of the past few quarters have been reflected in the operating performance too.
On a sequential basis, however, higher input costs and slower price hikes have impacted the margins.
“Various government initiatives such as National Infrastructure Pipeline, Gati Shakti Program, and PLI schemes across sectors are supporting investment and manufacturing growth in India”, the management said.
It added further that construction, infrastructure and renewable energy segment should witness healthy pickup while residential real estate continues its recovery, aided by lower interest rates.
Shares of JSW Steel ended at Rs 666.65, down by Rs15.80, or 2.32 per cent on the BSE.