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JSW Steel gains as crude steel production rises 30% QoQ

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Capital Market
Last Updated : Oct 09 2020 | 11:50 AM IST

JSW Steel rose 1.04% to Rs 296 after the steel major's crude steel production rose 30% to 3.85 million tonnes (MnT) in Q2 FY21 as against 2.96 MnT in Q1 FY21.

The company has achieved average capacity utilisation of 86% in Q2 FY21 in line with pre Covid-19 level of 85% in Q2 FY20. This is higher from capacity utilisation of 66% for Q1 FY21, which was impacted by the pandemic.

Sequentially, rolled products (flat) production jumped 38% to 2.84 MnT in Q2 FY21 as against 2.05 MnT in Q1 FY21. Rolled products (long) production jumped 69% to 0.77 MnT during the quarter compared with 0.45 MnT achieved in the previous quarter.

On a year-on-year (Y-o-Y) basis, crude steel production was almost flat compared with 3.84 MnT in Q2 FY20. Rolled products (flat) production jumped 5% to 2.84 MnT in Q2 FY21 as against 2.71 MnT in Q2 FY20. Rolled products (long) production slipped 7% to 0.77 MnT during the quarter compared with 0.82 MnT in the corresponding quarter last year.

The stock hit a 52-week high at Rs 298.35 today. The scrip has galloped 123.39% from its 52-week low of Rs 132.50 hit on 3 April 2020.

The steel major's consolidated net loss stood at Rs 582 crore in Q1 June 2020 compared with net profit of Rs 1,008 crore in Q1 June 2019. Consolidated net sales slumped 41% to Rs 11,454 crore in Q1 June 2020 over Rs 19,407 crore in Q1 June 2019.

JSW Steel is a flagship company of the JSW Group, an integrated steel manufacturer in India with an installed steel-making capacity of 18 million tonnes per annum (MTPA).

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First Published: Oct 09 2020 | 10:58 AM IST

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