The country’s largest steelmaker reported its earnings during market hours on Friday and its shares rose 1.4% on the BSE to Rs. 1,238.35 was reached.
While higher than the previous year, the bottomline was down 75% sequentially as the March quarter saw Rs. 17,888 crore benefited from a one-time gain.
For the June quarter, consolidated income from operations grew by around 10% year-on-year to Rs. 47,364 crores; Revenue growth stood at 19% on a proforma basis after adjusting for Bhushan Power sales in the comparable quarter. The company was de-consolidated from JSW Steel from March earlier this year.
Revenue growth for the steelmaker was boosted by a combination of higher steel prices and a 4% rise in consolidated sales volume to 6.25 million tonnes for the quarter.
Total expenses for the quarter rose less than 4% year-on-year to Rs. 41,830 crore – which was relatively lower than the revenue growth of the period – finance costs fell by about 23% to Rs. 1,712 crores. JSW Steel’s consolidated net debt at the end of June fell to Rs. 46,157 crore which was Rs. 53,870 crores.
The net debt to equity ratio at the end of the quarter stood at 0.42 times, as against 0.51 times at the end of the March quarter, while the net debt to EBITDA ratio declined to 1.46 times from 1.81 times.
Revenue growth and relatively low cost growth boosted consolidated earnings before interest, tax, depreciation and amortization for the company, which rose 38% year-on-year to Rs. 9,383 crores. EBITDA per tonne of steel increased 23% YoY during the quarter to Rs. 14,990 has been reached.
The company this year on capital expenditure of Rs. 22,000 – 24,000 spend guidance has been maintained and during the quarter Rs. 4,869 crore has been spent.
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