JSW Steel Q4FY22 Results: Consolidated Profit rises 69% YoY to Rs 4,516 crore

JSW Steel today reported a 69.20 per cent YoY rise in the consolidated profit at Rs 4,516 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 2,669 crore in the corresponding quarter last year.

The company's consolidated revenue from operations grew 74.16 per cent YoY to Rs 38,071 crore in the reported quarter against a revenue of Rs 21,859 crore.

JSW Steel's EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 56.20 per cent to Rs 9,132 crore in December 2021 quarter against an EBITDA of Res 5,846 crore posted last year. However, the margin contracted to 24 per cent in Q3FY22 against 27 per cent posted in Q3FY21.

Besides, the company has logged consolidated crude steel production of 5.21 million tonnes (excluding the JSW Special Products Ltd. joint venture) in the December 2021 quarter showing a growth of 22 per cent QoQ. The saleable steel sales stood at 4.63 million tonnes (excluding the JSW Special Products Ltd. joint venture) registering an increase of 16 per cent QoQ in the reported quarter.

Its consolidated net debt to equity (post-consolidation of BPSL) stood at 1.02x in the reported quarter against 0.92x at the end of Q2FY22. Its net debt to EBITDA stood at 1.73x as against 1.58x at the end of Q2FY22. This is after incurring a CapEx of Rs 4,026 crore during the quarter and consolidation of Bhushan Power & Steel Ltd (BPSL).

In a statement, JSW Steel said, "The Company registered a strong VASP (value-added & special products) volume, with its share of VASP at 62 per cent from 60 per cent in the September quarter and 57 per cent in the year-ago quarter of JSW Steel Indian operations excluding BPSL and JV, driven by increased domestic sales to automotive, solar and appliance segments.

In its update about the projects, the company said, its 5 MPTA brownfield expansion at Vijayanagar is progressing well, with civil work underway at the site. Long-lead time items have been ordered, letter of credit established. The project is expected to be completed by FY24.

The downstream expansion project at Vijayanagar, Vasind and Tarapur are in advance stages of implementation, with several lines having been commissioned in the first nine months of FY22.

The company's CapEx spent was Rs 4,026 crore during Q3FY22 and Rs 10,353 crore for 9 months of FY22, against a planned CapEx spend of Rs 18,240 crore for FY22. During the Q3FY22, BPSL incurred a CapEx of Rs 180 crore.