JSW Steel: Q1FY15 Result Analysis
Gaurav Girdhar / 04 Aug 2014
JSW Steel announced its financial results for the quarter ended June’14. We give you the highlights of the company’s performance.
The net profit of JSW Steel increased significantly to Rs 656.49 crore in June’14 quarter as against a loss of Rs 381.82 crore in June’13 quarter. This was mainly on the back of net sales which rose to Rs 13254 crore in June’14 as compared to Rs 10270.66 crore in June’13 quarter. The other income was also up to Rs 53.67 crore in June’14 as compared to Rs 1.12 crore in June’13, up 47% (YoY).
The expenses were up to Rs 11437.80 crore in June’14 quarter from Rs 9141.57 crore in June’13 quarter, reason being increase in cost of raw material and other expenses by 14% and 48% respectively.
The total salable steel production went up by 13% to 2.88 million tonnes in June’14 from 2.55 million tonnes in June’13 quarter (YoY).
Coming to the segment wise performance, the revenues from steel and power were up by 21% and 1.44% respectively (YoY). The revenue from others stood at Rs 65.82 crore.
Sheshagiri Rao, JMD & Group CFO, JSW Steel said in an analyst meet that the increase in profit was aided by increase in sale of value added products of the company. The demand for steel was less in this quarter as monsoon was low. However, the demand for its products is expected to increase in the second quarter for the fiscal year. The company’s strategy will be focusing on backward and forward integration. Moreover, the company will try to expand its existing capacity by 2 million tonnes.
JSW Steel is the largest Indian exporter of steel at 768 tonnes. Currently, the company’s capacity utilization rate is at 85%.
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