JSW Steel has returned to black in October-December quarter of 2022-23 with consolidated net ptofit of INR 474 crores after loss of INR 9134 crores in July-September quarter of 2022-23. The Company's financial performance during the quarter was better sequentially, mainly due to lower coking coal prices.---------------------------------Consolidated PerformanceHighest Ever Crude Steel Production: 6.14 million tonnesSaleable Steel Sales: 5.63 million tonnesRevenue from Operations: INR 39,134 croresOperating EBITDA: INR 4,547 croresNet profit after Tax: INR 474 crores-------------------------------Standalone PerformanceHighest Ever Crude Steel Production: 5.32 million tonnesSaleable Steel Sales: 4.95 million tonnesRevenue from Operations: INR 30,935 croresOperating EBITDA: INR 4,030 croresNet profit after Tax: INR 1,234 croresJSW Steel Coated Products (Consolidated)During the quarter, JSW Steel Coated Products, including its subsidiaries, registered a production volume (GI/GL + Tin) of 0.73 million tonnes and sales volume of 0.84 million tonnes. Revenue from operations for the quarter stood at INR 6,679 crores, and an operating EBITDA loss of INR 11 crores. Margins were impacted by lower realizations and inventory losses. The subsidiary reported a loss after tax of INR 162 crores for the quarter.Bhushan Power & Steel LtdDuring the quarter, BPSL registered Crude Steel Production of 0.74 million tonnes and sales volume of 0.68 million tonnes. Revenue from Operations and Operating EBITDA for the quarter stood at INR 4,998 crores and INR 341 crores, respectively. BPSL reported a Loss after Tax of INR 150 crores for the quarter.JSW Steel USA OhioThe EAF-based steel manufacturing facility in Ohio in USA produced 47,499 net tonnes of HRC and 91,962 net tonnes of Slabs during the quarter. Sales volumes for the quarter stood at 43,936 net tonnes of HRC and 44,784 net tonnes of Slabs. It reported an Operating EBITDA loss of USD 22.8 million for the quarter, part of which is attributable to one-off net realizable value losses.US Plate & Pipe MillThe Plate & Pipe Mill based in Texas in USA produced 80,753 net tonnes of plates and 8,489 net tonnes of pipes, reporting a capacity utilization of 32% and 6%, respectively, during the quarter. Sales volumes for the quarter stood at 74,030 net tonnes of plates and 6,738 net tonnes of pipes. It reported an Operating EBITDA of USD 17.2 million.JSW Steel (Italy) (Aferpi)The Italy based Rolled long products manufacturing facility produced 78,175 tonnes and sold 89,075 tonnes during the quarter. It reported an Operating EBITDA of EUR 7.8 million for the quarter.Update on Projects1. The 5 million tonne per annum brownfield expansion at Vijayanagar is progressing well, with civil works underway at the site. Long lead-time items have been ordered, and Letters of Credit established. Equipment erection has commenced for all packages. The project is expected to be completed by the end of FY24.2. The Phase-ll expansion at BPSL from 3.5 million tonne per annum to 5 million tonne per annum remains on track for completion by FY24.3. The Company's capex spend was INR 4,114 crores during Q3 FY23, and INR 10,707 crores for 9M FY23, against the revised planned capex spend of INR 15,000 crores for FY23.JSW Steel in outlook said “The global economic outlook has softened, with the World Bank expecting 2023 global GDP growth to decelerate to 1.7%, compared to 3% in their June 2022 forecast. This is driven by policy tightening by Central Banks and ongoing disruptions from the Russia-Ukraine conflict. That said, inflation appears to have peaked out and is moderating across most major economies. This, along with re-opening in China post the reversal of Zero Covid Strategy, is expected to provide some tailwinds in H2 2023. India's fundamental growth drivers remain robust despite the environment of global weakness. Manufacturing and Services PMI's and high frequency indicators are strong. The upcoming Union Budget is expected to continue the government's focus on infrastructure and the rural sector. Strong tax collections should support healthy spending ahead of general elections in 2024. Productive investments like NIP, PLI Schemes across various sectors, and indigenisation of defence equipment should continue to drive capex growth. The rural economy is expected to recover on the back of a better winter crop, elevated reservoir levels and falling inflation. The outlook for residential real estate, autos and renewables remains strong. However, the global slowdown and geopolitical risks remain key headwinds.”
JSW Steel has returned to black in October-December quarter of 2022-23 with consolidated net ptofit of INR 474 crores after loss of INR 9134 crores in July-September quarter of 2022-23. The Company's financial performance during the quarter was better sequentially, mainly due to lower coking coal prices.---------------------------------Consolidated PerformanceHighest Ever Crude Steel Production: 6.14 million tonnesSaleable Steel Sales: 5.63 million tonnesRevenue from Operations: INR 39,134 croresOperating EBITDA: INR 4,547 croresNet profit after Tax: INR 474 crores-------------------------------Standalone PerformanceHighest Ever Crude Steel Production: 5.32 million tonnesSaleable Steel Sales: 4.95 million tonnesRevenue from Operations: INR 30,935 croresOperating EBITDA: INR 4,030 croresNet profit after Tax: INR 1,234 croresJSW Steel Coated Products (Consolidated)During the quarter, JSW Steel Coated Products, including its subsidiaries, registered a production volume (GI/GL + Tin) of 0.73 million tonnes and sales volume of 0.84 million tonnes. Revenue from operations for the quarter stood at INR 6,679 crores, and an operating EBITDA loss of INR 11 crores. Margins were impacted by lower realizations and inventory losses. The subsidiary reported a loss after tax of INR 162 crores for the quarter.Bhushan Power & Steel LtdDuring the quarter, BPSL registered Crude Steel Production of 0.74 million tonnes and sales volume of 0.68 million tonnes. Revenue from Operations and Operating EBITDA for the quarter stood at INR 4,998 crores and INR 341 crores, respectively. BPSL reported a Loss after Tax of INR 150 crores for the quarter.JSW Steel USA OhioThe EAF-based steel manufacturing facility in Ohio in USA produced 47,499 net tonnes of HRC and 91,962 net tonnes of Slabs during the quarter. Sales volumes for the quarter stood at 43,936 net tonnes of HRC and 44,784 net tonnes of Slabs. It reported an Operating EBITDA loss of USD 22.8 million for the quarter, part of which is attributable to one-off net realizable value losses.US Plate & Pipe MillThe Plate & Pipe Mill based in Texas in USA produced 80,753 net tonnes of plates and 8,489 net tonnes of pipes, reporting a capacity utilization of 32% and 6%, respectively, during the quarter. Sales volumes for the quarter stood at 74,030 net tonnes of plates and 6,738 net tonnes of pipes. It reported an Operating EBITDA of USD 17.2 million.JSW Steel (Italy) (Aferpi)The Italy based Rolled long products manufacturing facility produced 78,175 tonnes and sold 89,075 tonnes during the quarter. It reported an Operating EBITDA of EUR 7.8 million for the quarter.Update on Projects1. The 5 million tonne per annum brownfield expansion at Vijayanagar is progressing well, with civil works underway at the site. Long lead-time items have been ordered, and Letters of Credit established. Equipment erection has commenced for all packages. The project is expected to be completed by the end of FY24.2. The Phase-ll expansion at BPSL from 3.5 million tonne per annum to 5 million tonne per annum remains on track for completion by FY24.3. The Company's capex spend was INR 4,114 crores during Q3 FY23, and INR 10,707 crores for 9M FY23, against the revised planned capex spend of INR 15,000 crores for FY23.JSW Steel in outlook said “The global economic outlook has softened, with the World Bank expecting 2023 global GDP growth to decelerate to 1.7%, compared to 3% in their June 2022 forecast. This is driven by policy tightening by Central Banks and ongoing disruptions from the Russia-Ukraine conflict. That said, inflation appears to have peaked out and is moderating across most major economies. This, along with re-opening in China post the reversal of Zero Covid Strategy, is expected to provide some tailwinds in H2 2023. India's fundamental growth drivers remain robust despite the environment of global weakness. Manufacturing and Services PMI's and high frequency indicators are strong. The upcoming Union Budget is expected to continue the government's focus on infrastructure and the rural sector. Strong tax collections should support healthy spending ahead of general elections in 2024. Productive investments like NIP, PLI Schemes across various sectors, and indigenisation of defence equipment should continue to drive capex growth. The rural economy is expected to recover on the back of a better winter crop, elevated reservoir levels and falling inflation. The outlook for residential real estate, autos and renewables remains strong. However, the global slowdown and geopolitical risks remain key headwinds.”
