On a consolidated basis, JSW Steel reported a net profit of Rs 4,191 crore in Q4 FY21, steeply higher than net profit of Rs 188 crore in Q4 FY20.
Revenue from operations increased 50.6% year-on-year (YoY) to Rs 26,934 crore during the quarter. Operating EBITDA surged to Rs 8,440 crore in Q4 FY21 from Rs 2,975 crore in Q4 FY20. Profit before tax in Q4 FY21 stood at Rs 6,272 crore, steeply higher than Rs 119 crore in Q4 FY20.
The company's consolidated net gearing (net debt to equity) stood at 1.14x as on 31 March 2021 as against 1.48x as on 31 March 2020.
Net debt to EBITDA stood at 2.61x as on 31 March 2021 as against 4.50x as on 31 March 2020. The company's debt has come down by Rs 858 crore even after spending on capex expenditure/ acquisitions aggregating to around Rs 15,000 crore during FY2021.
On a standalone basis, the company reported a net profit of Rs 4,018 crore in Q4 FY21 as against net profit of Rs 242 crore in Q4 FY20. Revenue from operations jumped 59.7% to Rs 24,398 crore in Q4 FY21 over Q4 FY20.
Crude Steel production rose 6% YoY to 4.19 million tonnes while saleable steel sales increased 10% YoY to 4.06 million tonnes in the fourth quarter. The company operated at 93% average capacity utilization in Q4 FY21 as against at 91% in Q3 FY20.
Operating EBITDA for the quarter stood at Rs 8,021 crore, up by 149% YoY with an EBITDA margin of 32.9%, led by enhanced spreads, favourable product mix and continued upward trend in steel prices. This was partly offset by higher prices of iron ore, coal and natural gas. Overall volume of iron ore from captive mines in the fourth quarter constituted 42% of total iron ore requirement.
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Exceptional items for the quarter ended 31 March 2021 represents impairment provision of Rs 386 crone on value of loans given and interest receivable from overseas subsidiaries on the assessment of recoverable value of the US operations determined by independent external valuers using cash flow projections.
"The exceptional fourth quarter performance of the company was due to strong domestic demand supplemented by exports, and improved steel prices. The global and Indian economies showed remarkable recovery supported by large fiscal and accommodative monetary stimulus extended by governments and central banks that facilitated faster V-shaped recovery.
However, the emergence of a second wave of COVID-19 in India has dampened the sentiment due to widespread localised lockdowns in several parts of the country," JSW steel said in a statement.
The company reported 58.7% rise in standalone net profit to Rs 8,393 crore on 10.1% increase in revenue from operations to Rs 70,727 crore in the year ended 31 March 2021 over the year ended 31 March 2020.
On a standalone basis, JSW Steel has guided for a crude steel production of 18.50 million tonnes and sales of 17.40 million tonnes in FY22. Total combined crude steel and sales in FY22 are expected to be 22.94 million tonnes and 21.63 million tonnes, respectively.
The company's board has recommended a dividend of Rs 6.50 per share for FY21.
The board of JSW Steel has approved the raising of long-term resources through issuance of non-convertible debentures with warrants convertible into equity shares of the company for an amount not exceeding Rs 7,000 crore and issue of equity shares and/or convertible securities for an amount not exceeding Rs 7,000 crore to qualified institutional buyers by way of a qualified institutions placement (QIP).
The company's board has also approved a rights issue of an amount not exceeding Rs 5,000 crore. The board has authorised the finance committee, a sub-committee of the board of directors, to decide on the terms and conditions of the Issue including the rights entitlement ratio, issue price, record date, timing of the Issue and other related matters.
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).
The scrip gained 0.50% to end at Rs 697.80 on Friday.
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