JSW Steel Limited has reported its results for the Third Quarter ended 31st Dec, 2021. During the Quarter, JSW Steel reported Crude Steel Production of 4.41 million tonnes, an increase of 8% QoQ led by an increase in average capacity utilization to 94% from the existing operations and production of 0.18 million tonnes from the recently commissioned Dolvi Phase-2 expansion. Sales of Saleable Steel for the quarter was 4.00 million tonnes, higher by 6% QoQ, led by a 29% increase in domestic sales, driven by demand from automotive, solar and appliance sectors. Exports were moderated to 15% of sales during the Quarter vs. 30% of sales in Q2 of FY2022. The quarterly EBITDA margin of 23.6% was lower QoQ primarily due to elevated prices of coking coal and higher power cost while domestic Iron ore prices during the Quarter softened in line with global indices, partly offsetting the cost increase.

Standalone Performance for Q3 FY2022

Crude Steel production: 4.41 million tonnes, up 8% QoQ

Saleable Steel sales: 4.00 million tonnes, up 6% QoQ

Sale of Flat Products: 3.00 million tonnes, up 15% QoQ

Sale of Long Products: 0.88 million tonnes, down 7% QoQ

Sale of Semis: 0.12 million tonnes, down 47% QoQ

Revenue from Operations: INR 28,850 crores, down 47% QoQ

Quarterly Operating EBITDA: INR 6,797 crores, down 22% QoQ

Quarterly Net Profit after Tax: INR 3,424 crores, down 36% QoQ

JSW Steel Coated Products (Consolidated)

During the quarter, JSW Steel Coated Products, including its subsidiaries, registered production volume (GI/GL + Tin) of 0.73 million tonnes and a sales volume of 0.77 million tonnes. Revenue from Operations and Operating EBITDA for the quarter stood at INR 7781 crores and INR 570 crores, respectively. It reported a Profit after Tax of INR 346 crores for the quarter.

Bhushan Power & Steel Ltd

BPSL became a subsidiary with effect from 1st October 2021, as JSW Steel increased its stake in BPSL to 83.28% from 49% earlier on conversion of OFCD's. During the quarter, BPSL registered Crude Steel Production of 0.64 million tonnes and Sales volume of 0.58 million tonnes. Exports accounted for 36% of the sales mix. Revenue from Operations and Operating EBITDA for the quarter stood at INR 5,083 crores and INR 1,547 crores, respectively. It reported a Profit after Tax of INR 1,018 crores for the quarter.

JSW Steel USA Ohio Inc

During Q3 FY2022, the EAF-based operations at Ohio produced 180,112 net tonnes of Crude Steel, reporting an increase in average capacity utilization to 50%. Sales volumes for the quarter stood at 74,721 net tonnes of Slabs and 92,557 net tonnes of HRC. It reported an EBITDA of USD 42.12 million for the quarter compared to Q2 of FY2022 EBITDA of USD 48.28 million.

US Plate & Pipe Mill:

The Plate & Pipe Mill based in Texas USA produced 76,621 net tonnes of Plates and 1,261 net tonnes of Pipes. Sales volumes for the quarter stood at 66,573 net tonnes of Plates and 1,251 net tonnes of Pipes. It reported an EBITDA of USD 13.38 million for the quarter compared to Q2 FY2022 EBITDA of USD 13.16 million.

Italy Operations:

The Italy-based Rolled long products manufacturing facility produced 120,070 tonnes and sold 113,957 tonnes during the quarter. It reported an EBITDA loss of Euro 6.8 million for the quarter compared to an EBITDA of Euro 6.1 million in Q2 FY2022 due to certain onetime write-offs/ impairment charge.

Consolidated Performance for Q3 FY2022

Crude Steel Production

JSW Steel Standalone: 4.41 million tonnes

Bhushan Power & Steel Ltd: 0.64 million tonnes

JSW Steel USA Ohio: 0.16 million tonnes

JSW Ispat Special Products Ltd: 0.14 million tonnes

JSW Steel Indian Operations including Joint Control Entities: 5.19 million tonnes

Total Combined Volumes: 5.35 million tonnes

Saleable Steel sales

JSW Steel Standalone: 4 million tonnes

Bhushan Power & Steel Ltd: 0.58 million tonnes

JSW Steel USA Ohio: 0.15 million tonnes

JSW Ispat Special Products Ltd: 0.13 million tonnes

JSW Steel Indian Operations including Joint Control Entities: 4.72 million tonnes

Total Combined Volumes: 4.87 million tonnes

Revenue from Operations: INR 38,071 crores

Quarterly Operating EBITDA: INR 9,132 crores

Quarterly Net Profit after Tax: INR 4,516 crores

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Strategic Research Institute

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