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Home >Companies >Company Results >JSW Steel posts record profit of 5,904 crore in Q1, revenue rises 145%

JSW Steel recorded its highest-ever consolidated net profit at 5,904 core in the quarter ended June 30, 2021, on low base effect. The Indian steelmaker had posted a consolidated loss of 561 crore in the corresponding quarter last fiscal.

The company also recorded its highest ever consolidated revenue at 28,902 crore in Q1 FY22, a 145 per cent rise as compared to 11,782 crore in Q1 FY21.

JSW Steel saw its consolidated Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rise to its highest ever level at 10,274 crore, with an EBITDA margin of 35.5 per cent.

The profit after tax (including subsidiaries, joint ventures and associates) for the quarter under review was 5,900 crore, another record for the company, as opposed to a loss of 582 crore in the same quarter last year.

Net debt to equity stood at 1.04 times at the end of the June quarter this fiscal, as opposed to 1.14 times seen in the Q4 of previous fiscal. Net debt to EBITDA was recorded at 1.89 times in Q1 FY22, as against 2.61 times at the end of Q4 FY21.

"During the quarter, the joint ventures operations, mainly Bhushan Power and Steel Ltd. and JSW Ispat Special Products Ltd, performed satisfactorily. The share of profit from JVs for the quarter stood at 323 crore," JSW Steel said in a regulatory filing on Friday.

JSW Steel reported production of 5.07 million tonnes of crude steel and sales up to 4.33 million tonnes, during the June quarter this fiscal. This included 4.93 million tonnes of crude steel production and sales up to 4.23 million tonnes from Indian operations.

On the outlook for the coming quarters, especially in the context of Covid-19 second wave and a probable third wave, JSW Steel exuded hope that that construction and infrastructure activities will gain momentum by the second half of current fiscal.

"The government continues to focus on manufacturing, with continued rollout of PLI scheme for various sectors, including specialty steel. Construction and infrastructure activities are expected to gain momentum in H2 FY2022," JSW Steel stated in its filing.

"Accelerated pace of vaccination in India is leading to improved business sentiment. Ongoing normal monsoons, and the accommodative stance of the RBI are key positives for the economy. Overall, faster ramp-up of vaccination programs an d favorable fiscal policies with large budgetary allocations focused on infrastructure are expected to support a strong economic recovery," it further added.

Ahead of the results, JSW Steel shares closed the day's trade on Friday at 717.40, up 0.70 points or 0.10 per cent.

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