JSW Steel Ltd reported a five-fold jump in net profit to Rs 2,450 crore in the third quarter of the fiscal compared with Rs 474 crore in the same period of last year, while revenue went up 7.1 per cent to Rs 41,940 crore.
The company benefited from higher sales, which went up 7 per cent y-o-y, to 6 million tonnes (mt) on a consolidated basis and lower cost, especially power and fuel.
JSW Steel mentioned that the global economy remained resilient despite headwinds and Indian economic growth remained strong, aiding steel demand.
Consolidated crude steel production for the quarter stood at 6.87mt, higher by 8 per cent QoQ and 12 per cent YoY. The strong performance was driven by capacity utilisation rising to 94 per cent, it added.
JSW says it was on track to meet guidance of 26.24mt of production and 25mt of sales in 2023-24.
Bhushan Power & Steel, the company’s subsidiary, made a profit of Rs 260 crore, while JSW Steel Coated Products, a loss of Rs 52 crore.
The second phase of expansion (from 3.5mt to 5mt) at Bhushan Power & Steel Limited is progressing well and is expected to be completed in 2023-24.
The board, which met to finalise the results, approved a long-term fund raise of Rs 2,000 crore. It also extended the tenure of Jayant Acharya, joint managing director & CEO, for another five years from May 2024.
JSW Steel is the flagship business of the diversified, $23 billion JSW Group. The group also has interests in energy, infrastructure, cement, paints, sports and venture capital.