JSW Steel Q3 Results FY2023, Net Profit at Rs. 474 Crores

On 20th January 2023, JSW Steel announced its results for the third quarter of FY2023.

Key Highlights:

- Saleable Steel sales for the quarter stood at 5.63 million tonnes, higher by 21% YoY driven by higher domestic sales, but lower by 2% QoQ. The decline in sales realizations partly offset the benefit of lower costs.
- The company registered Revenue from Operations of Rs. 39,134 crores
- Operating EBITDA of  Rs. 4,547 crores, with an EBITDA margin of 11.6%. The increase in EBITDA QoQ is attributable primarily to a reduction in Coking Coal prices. 
- The Profit after Tax for the quarter was Rs. 474 crores, after incorporating the financials of subsidiaries, joint ventures and associates.
- The Company's consolidated Net Gearing (Net Debt to Equity) stood at 1.09x at the end of the quarter, and Net Debt to EBITDA stood at 3.51x. 
- Net Debt as of 31st December 2022 stood at Rs. 69,498 crores due to higher working capital and FX impact.

Business Highlights:

- During the quarter, JSW Steel Coated Products, including its subsidiaries, registered a production volume (GI/GL+ Tin) of 0.73 million tons and sales volume of 0.84 million tonnes. Revenue from Operations for the quarter stood at Rs. 6,679 crores, and an Operating EBITDA loss of Rs. 11 crores. Margins were impacted by lower realizations and inventory losses. The subsidiary reported a Loss after Tax of Rs. 162 crores for the quarter.
- During the quarter, Bhushan Power & Steel Ltd (BPSL) registered Crude Steel Production of 0.74 million tonnes and Sales volume of 0.68 million tonnes. Revenue from Operations and Operating EBITDA for the quarter stood at Rs. 4,998 crores and Rs. 341 crores, respectively. BPSL reported a Loss after Tax of Rs. 150 crores for the quarter.
- The EAF-based steel manufacturing facility in Ohio, USA, produced 47,499 net tonnes of HRC and 91,962 net tonnes of Slabs during the quarter. Sales volumes for the quarter stood at 43,936 net tonnes of HRC and 44,784 net tonnes of Slabs. It reported an Operating EBITDA loss of US $22.8 million for the quarter, part of which is attributable to one-off NRV (net realizable value) losses.
- The Plate & Pipe Mill based in Texas, USA produced 80,753 net tonnes of Plates and 8,489 net tonnes of Pipes, reporting a capacity utilization of 32% and 6%, respectively, during the quarter. Sales volumes for the quarter stood at 74,030 net tonnes of Plates and 6,738 net tonnes of Pipes. It reported an Operating EBITDA of US$ 17.2 million
- The Italy-based Rolled long products manufacturing facility produced 78,175 tonnes and sold 89,075 tonnes during the quarter. It reported an Operating EBITDA of Euro 7.8 million for the quarter.
- During the Quarter, the combined crude steel production of JSW Steel was 6.24 Million tonnes, sequentially higher by 10%, mainly due to the ramp-up at 5mtpa Dolvi Phase-Il expansion which achieved capacity utilisation of 85% vs. 80% in Q2 FY23. The re-starting of facilities at JSW Ispat Special Products (JISPL) after a maintenance shutdown that had commenced in Q2 FY23, and ongoing ramp-up of BPSL operations after expansion from 2.75mtpa to 3.5mtpa capacity, also contributed to higher production.
- The 5mtpa brownfield expansion at Vijayanagar is progressing well, with civil works underway at the site. The project is expected to be completed by the end of FY24.
- The Phase-ll expansion at BPSL from 3.5mtpa to Smtpa remains on track for completion by FY24.
- The Company's Capex spend was Rs. 4,114 crores during Q3 FY23, and Rs. 10,707 crores for 9M FY23, against the revised planned Capex spend of Rs. 15,000 crores for FY23.