 "JSW Steel plans tie-up with OMC for long-term iron ore linkage")
JSW Steel on Thursday reported a 392.9 per cent year-on-year (Y-o-Y) jump in the consolidated net profit to Rs 2,415 crore for the December quarter of 2023-24, on the back of lower raw material cost, better volume and realisation.
In the year-ago period, the company’s net profit stood at Rs 490 crore, impacted by high raw material prices and export duty.
The Q3FY24 net profit beat the Bloomberg consensus estimate of Rs 2,170.5 crore. But it trailed revenue estimates of Rs 42,774.5 crore. JSW Steel’s consolidated revenue from operations stood at Rs 41,940 crore in Q3FY24, up 7.2 per cent Y-o-Y. Sequentially, revenue was down by 5.93 per cent and net profit by 12.5 per cent.
The company said robust economic activity and government capex continued to drive steel demand growth in India.
The global economy was also resilient despite headwinds such as elevated interest rates and adverse geopolitical headwinds, the company said.
The consolidated crude steel production for the quarter stood at 6.87 million tonnes (mt), higher by 8 per cent quarter-on-quarter (Q-o-Q) and 12 per cent Y-o-Y.
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The strong performance, the company said, was driven by capacity utilisation rising to 94 per cent during the quarter compared to 89 per cent in Q2FY24 at the Indian operations. The steelmaker had taken maintenance shutdowns at Indian operations during Q2FY24.
Capacity utilisation also improved at the Ohio, USA operations due to a better demand scenario.
In overseas subsidiaries, JSW Steel USA Ohio reported an Ebitda loss of $6.44 million. Among the Indian subsidiaries, Bhushan Power & Steel reported a profit after tax of Rs 260 crore for the quarter; JSW Steel Coated Products (consolidated) reported a net loss of Rs 52 crore.
