JSW Steel Q3 Performance Impressive, Reports Net Profit Rs 455 crore

JSW Steel announced its December 2013 quarter results and the results were in-line with the street estimates. While on the standalone basis the company posted a topline of Rs 11731.44 crore against Rs 11485.67 Crore in September 2013 quarter, the bottomline stood strong at Rs 652.15 crore against Rs 101.25 crore in September 2013 quarter. On the consolidated basis the company posted a topline of Rs 13622.77 crore and bottomline of Rs 455.01 crore as against Rs 12983.78 Crore and a loss of Rs 129.89 Crore respectively for September 2013.

However the results are reported after giving effect to the scheme of amalgamation and arrangement between the JSW Steel and JSW ISPAT Steel and others, which became effective from 1st June, 2013 with appointed date of July 1, 2012. The figures for the corresponding quarter are not strictly comparable with that of the current quarter as the effect of implementation of the Scheme is included in the current quarter figures.If we take a look at the operational performance of the company, during the quarter, it achieved highest ever crude steel production (3.19 million tonnes, 52% growth Y-o-Y). Apart from that the highest ever consolidated exports of 1.0 million tonne (accounting for 60% of India’s overall steel exports) and highest ever consolidated EBIDTA of Rs 2,409 crore.

Subsidiaries performance: Chile Iron ore Mines & US Plate and Pipe Mills

The Iron ore mines in Chile produced 0.24 million tonne and shipped 0.23 million tonne of Iron ore concentrate during the quarter. The Company earned an EBITDA of USD 5.23 million for the quarter.

The US based Plate and Pipe Mill facility produced 0.097 million net tones of Plates and 0.012 million net tonne of Pipes, reporting a capacity utilization of 39% and 9%, respectively, during 3QFY14. Sales volumes for the quarter stood at 0.086 million net tonne of Plates and 0.019 million net tonne of Pipes. EBIDTA loss stood at USD 1.73 million in this period.

While this has been the scenario on the global front, the company management has provided a good future outlook. As on the volume front, Seshagiri Rao (Joint MD and Group CFO, JSW Steel) said, “We had provided a yearly production guidance of 12 million tonne and sales volume of 11.55 million tonne for FY14. For 9MFY14 we are at 9 million tonne and 8.75 million tonne. Hence we are confident of achieving our targets”.