JSW Steel slipped 2.49% to Rs 535 after the company reported 23% fall in consolidated net profit to Rs 3,234 crore on a 74% increase in net sales to Rs 46,026 crore in Q4 FY22 over Q4 FY21.
Total expenditure during the quarter surged 107.2% YoY to Rs 38,483 crore, due to a sharp spike in cost of raw materials, power & fuel, other expenses and inventory costs.
Operating EBITDA in Q4 FY22 grew 9% YoY to Rs 9,184 crore. Consolidated operating EBITDA margin for the quarter slumped by 11.76 percent to 19.58% from 31.34% recorded in the corresponding period of last year.
Profit before tax in Q4 FY22 stood at Rs 5,074 crore, down by 19.1% from Rs 6,272 crore reported in Q4 FY21.
Crude Steel production was 5.8 million tons (MT) (up 38% YoY) while sales of Saleable Steel was 5.99 MT (up 47% YoY) in Q4 FY22.
JSW Steel said that subsequent to the year end, a subsidiary of the company in USA had received a final arbitration order on its dispute with the lessors of coking coal mining lease and plant lease and a consequential notice of termination of lease.
Accordingly, an impairment provision of Rs 710 crore is recorded towards the value of property, plant & equipment, goodwill, other assets and accrual of resultant liabilities.
Further, the company has recognized a provision of Rs 31 crore towards impairment of Capital Work In Progress at Ranchi, Jharkhand based on assessment of the recoverable value. The same is disclosed as an exceptional item.
The company's consolidated net gearing (net debt to equity) stood at 0.83x at the end of the quarter as against 1.02x at the end of Q3 FY22 and net debt to EBITDA stood at 1.45x as compared with 1.73x at the end of Q3 FY22. During the quarter, net debt reduced by Rs 9,662 crore.
"The domestic steel industry continued to see steady demand from the government's continued focus on public infrastructure. Investments in the construction and infrastructure sector continued to support steel consumption. Hence the steel industry witnessed an increase in finished steel consumption by 7.2% in Q4 FY 2021-22 over the previous quarter.
On the back of this strong demand environment, the company delivered a strong set of numbers, achieving an average capacity utilization of 98% for the quarter vs 94% in Q3 FY 2021-22 from the existing standalone operations, and further supplemented by ramp-up of the Dolvi phase-II expansion, JSW Steel said in a statement.
For the full year period from April - March 2022, the consolidated net profit rose nearly threefold to Rs 20,665 crore from the profit of Rs 7,911 crore achieved during FY21. Net sales jumped 84.3% YoY to Rs 1,43,829 crore in FY22.
The company has given a guidance of 25 MT of crude steel production on a consolidated basis for FY23 and expects a sales volume of 24 MT.
The company's board has recommended a dividend of Rs 17.35 per equity share for the year ended 31 March 2022. The total outflow on account of equity dividend will be approximately Rs 4,194 crore, compared to Rs 1,571 crore paid for FY21.
JSW Steel, the flagship business of the diversified JSW Group, is India's leading integrated steel company with a steel-making capacity of 28 MTPA in India & USA, including capacities under joint control & new capacity to be commissioned at Dolvi during this year.
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