India’s largest steel maker JSW Steel after stellar performances has reported net loss of INR 915 crores for the Second Quarter ended 30th September 2022.SW Steel said “The Company's performance during the quarter was significantly impacted by a sharp fall in steel prices, while benefit of lower raw material prices will flow through with a lag. One-off items such as NRV (net realizable value) provisions and inventory losses, mark-to-market unrealized loss on outstanding foreign currency loans and payment of export duty on exports further impacted the operating performance.” ---------------------------------Consolidated PerformanceCrude Steel Production: 5.66 million tonnesSaleable Steel Sales: 5.74 million tonnesRevenue from Operations: INR 41,778 croresOperating EBITDA: INR 1,752 croresNet Loss after Tax: INR 915 crores -------------------------------Standalone Performance:Crude Steel Production: 4.95million tonnesSaleable Steel Sales: 5.01 million tonnesRevenue from Operations: INR *32,494 croresOperating EBITDA: INR 1,742 croresNet loss after Tax: INR 91 crores JSW Steel Coated Products - During the quarter, JSW Steel Coated Products, including its subsidiaries, registered a production volume of 0.68 million tons and sales volume of 0.79 million tonnes. Revenue from Operations for the quarter stood at INR 6,723 crores, and an Operating EBITDA loss of INR 79 crores. Margins were impacted by lower realization and higher zinc prices. The subsidiary reported a Loss after Tax of INR 260 crores for the quarter. Bhushan Power & Steel - During the quarter, BPSL registered Crude Steel Production of 0.63 million tonnes and Sales volume of 0.64 million tonnes. Revenue from Operations and Operating EBITDA loss for the quarter stood at INR 4,805 crores & INR 183 crores, respectively. BPSL reported a Loss after Tax of INR 340 crores for the quarter. Performance during the quarter was severely affected by non-availability of iron ore and disruptions due to heavy rainfall in Odisha. JSW Steel USA Ohio - The EAF-based steel manufacturing facility in Ohio, USA, produced 48,691 net tonnes of HRC and 90,709 net tonnes of Slabs during the quarter. Sales volumes for the quarter stood at 52,862 net tonnes of HRC and 63,614 net tonnes of Slabs. Volumes were lower due to subdued demand for HRC in USA. It reported an Operating EBITDA loss of USD 40.25 million for the quarter, part of which is attributable to NRV losses. US Plate and Pipe Mill - The Plate & Pipe Mill based in Texas, USA produced 77,172 net tonnes of Plates and 4,969 net tonnes of Pipes, reporting a capacity utilization of 36% and 4%, respectively, during the quarter. Sales volumes for the quarter stood at 74,665 net tonnes of Plates and 4,576 net tonnes of Pipes. It reported an Operating EBITDA of USD 24.73 million. JSW Steel (Italy) (Aferpi) - The Italy based Rolled long products manufacturing facility produced 75,907 tonnes and sold 65,604 tonnes during the quarter. It reported an Operating EBITDA of Euro 1.0 million for the quarter. JSW Steel in Outlook said “India remains a bright spot amidst a challenging global economic backdrop, and is expected to be the fastest growing major economy in the world. India has one of the highest Manufacturing and Services PMI's among major economies. The government is focused on building infrastructure, supported by healthy tax collections, and growing domestic manufacturing. The residential real estate sector is seeing continued strength, with strong sales and new launches, amidst healthy affordability. The outlook for the auto sector remains encouraging, driven by strong demand and abating chip shortages. A global slowdown and monetary tightening by developed market central banks could be headwinds to growth. Despite a challenging global economic scenario, we expect healthy steel demand growth in India during H2 FY23 which along with flow through of lower raw material prices should aid Company's performance in the coming quarters.”
India’s largest steel maker JSW Steel after stellar performances has reported net loss of INR 915 crores for the Second Quarter ended 30th September 2022.SW Steel said “The Company's performance during the quarter was significantly impacted by a sharp fall in steel prices, while benefit of lower raw material prices will flow through with a lag. One-off items such as NRV (net realizable value) provisions and inventory losses, mark-to-market unrealized loss on outstanding foreign currency loans and payment of export duty on exports further impacted the operating performance.” ---------------------------------Consolidated PerformanceCrude Steel Production: 5.66 million tonnesSaleable Steel Sales: 5.74 million tonnesRevenue from Operations: INR 41,778 croresOperating EBITDA: INR 1,752 croresNet Loss after Tax: INR 915 crores -------------------------------Standalone Performance:Crude Steel Production: 4.95million tonnesSaleable Steel Sales: 5.01 million tonnesRevenue from Operations: INR *32,494 croresOperating EBITDA: INR 1,742 croresNet loss after Tax: INR 91 crores JSW Steel Coated Products - During the quarter, JSW Steel Coated Products, including its subsidiaries, registered a production volume of 0.68 million tons and sales volume of 0.79 million tonnes. Revenue from Operations for the quarter stood at INR 6,723 crores, and an Operating EBITDA loss of INR 79 crores. Margins were impacted by lower realization and higher zinc prices. The subsidiary reported a Loss after Tax of INR 260 crores for the quarter. Bhushan Power & Steel - During the quarter, BPSL registered Crude Steel Production of 0.63 million tonnes and Sales volume of 0.64 million tonnes. Revenue from Operations and Operating EBITDA loss for the quarter stood at INR 4,805 crores & INR 183 crores, respectively. BPSL reported a Loss after Tax of INR 340 crores for the quarter. Performance during the quarter was severely affected by non-availability of iron ore and disruptions due to heavy rainfall in Odisha. JSW Steel USA Ohio - The EAF-based steel manufacturing facility in Ohio, USA, produced 48,691 net tonnes of HRC and 90,709 net tonnes of Slabs during the quarter. Sales volumes for the quarter stood at 52,862 net tonnes of HRC and 63,614 net tonnes of Slabs. Volumes were lower due to subdued demand for HRC in USA. It reported an Operating EBITDA loss of USD 40.25 million for the quarter, part of which is attributable to NRV losses. US Plate and Pipe Mill - The Plate & Pipe Mill based in Texas, USA produced 77,172 net tonnes of Plates and 4,969 net tonnes of Pipes, reporting a capacity utilization of 36% and 4%, respectively, during the quarter. Sales volumes for the quarter stood at 74,665 net tonnes of Plates and 4,576 net tonnes of Pipes. It reported an Operating EBITDA of USD 24.73 million. JSW Steel (Italy) (Aferpi) - The Italy based Rolled long products manufacturing facility produced 75,907 tonnes and sold 65,604 tonnes during the quarter. It reported an Operating EBITDA of Euro 1.0 million for the quarter. JSW Steel in Outlook said “India remains a bright spot amidst a challenging global economic backdrop, and is expected to be the fastest growing major economy in the world. India has one of the highest Manufacturing and Services PMI's among major economies. The government is focused on building infrastructure, supported by healthy tax collections, and growing domestic manufacturing. The residential real estate sector is seeing continued strength, with strong sales and new launches, amidst healthy affordability. The outlook for the auto sector remains encouraging, driven by strong demand and abating chip shortages. A global slowdown and monetary tightening by developed market central banks could be headwinds to growth. Despite a challenging global economic scenario, we expect healthy steel demand growth in India during H2 FY23 which along with flow through of lower raw material prices should aid Company's performance in the coming quarters.”
