Big jump in JSW Steel net profit
Market leaders report strong numbers in fourth quarter
Calcutta: JSW Steel has reported a 186 per cent jump in net profit and a 16 per cent growth in revenue in the fourth quarter, backed by strong margins of the alloy across the globe.
The company's consolidated net profit stood at Rs 2,879 crore, up from Rs 1,008 crore in the same period last year. Revenues went up to Rs 20,817 crore from Rs 17,917 crore a year ago.
India's largest private sector steel maker recorded its best ever annual performance with net profit climbing to Rs 6,113 crore in 2017-18, up 76 per cent from Rs 3,467 crore in the previous fiscal. It sold 15.62 million tonnes of steel in 2017-18 compared with 14.77 million tonnes in the previous fiscal, representing a 6 per cent rise.
The board has announced a Rs 3.20 dividend for equity shares of face value of Re 1.
During the year, the company's US plate and pipe mill operation turned around, generating a positive EBIDTA, gaining from tariffs imposed on steel imports by the Trump administration. JSW Steel Coated Products also recorded a healthy profit of Rs 275 crore in 2017-18 from a revenue of Rs 12,553 crore.
The Sajjan Jindal promoted company announced a capital expenditure of Rs 17,600 crore, mainly on cost reduction projects such as coke oven and pellet plants. However, crude steel capacity will also be augmented apart from investment into downstream (tin plate, colour coated line).
Apart from increasing capacity of Vijaynagar plant by 1mt and Dolvi unit by 0.7mt to reach 24.7mt capacity by 2020, JSW will set up two coke oven plants of 1.5mt each and a pellet plant of 8mt.