The country’s largest steelmaker produced 6.35 million tonnes of steel on a consolidated basis during the quarter, down 1% from a year ago and 6% sequentially due to planned maintenance shutdowns at Dolvi and Bhushan Power.
As a result, capacity utilization at its India operations stood at 87% during the quarter, as against 92% a year ago.
“Increased imports, especially from China and FTA countries, are a challenge for the domestic steel industry,” the company said in a statement. The company exported 10% of its output from India during the quarter, up from 15% a year ago.
While consolidated sales volume rose 7% to 6.12 million tonnes during the quarter, it was down 9% from the March quarter. JSW Steel has guided for production of 28.40 million tonnes and sales of 27.00 million tonnes on a consolidated basis in the current fiscal.
Meanwhile, consolidated revenue grew by less than 2% year-on-year to Rs. 42,943 crores. Sales growth was lower than sales volume as net sales collections for India operations declined 5% year-on-year.
Operating profit during the quarter was Rs. 5,510 crore, while the margin was 12.8%. Profitability fell by around 22% year-on-year. It was down 10% from the previous quarter mainly driven by lower sales volume and some offs, including the impact of inventory valuation, the company said.
Interest expenses increased by 6% year-on-year due to higher debt.
By the end of June, the flagship company of the JSW Group had a Rs. 80,199 crore in net debt, which at the end of March stood at Rs. 73,916 crores. Its net debt-to-operating profit ratio was 3 times.
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