JSW Steel Delivers Highest Ever Half Yearly EBIDTA Of Rs.10,011 Crores
JSW Steel Limited (“JSW Steel” or the “Company”) today reported its results for the Second Quarter and the Half Year ended 30th Sep, 2018 (“2Q FY2019” or the “Quarter” and “1H FY2019” or the “Half year”).
Crude Steel production during the quarter increased by 6% YoY to 4.18 million tonnes aided by higher capacity utilization at Vijayanagar and Salem works.
Standalone Saleable steel sales volume for the quarter was up by 1% YoY to 3.96 million tonnes. The Company liquidated a large part of the inventory that was built-up during the previous quarter and consequently sales volumes increased by 3% QoQ during the quarter.
Consolidated Saleable Steel sales stood at 3.91 million tonnes during the quarter, driven by 14% increase in offtake from OEM’s and favorable international markets. The company strategically focused on increasing domestic sales volume, which witnessed a growth of 11% YoY in the quarter. Sales of value added and special products (VASP) accounted for 55% of total sales volumes and sales to automotive customers increased by 36% YoY during the year.
Standalone Financial Performance:
The Company recorded a growth of 28% YoY in revenue from operations for the quarter which stood at `19,669 crores, primarily driven by higher steel prices. Despite an increase in costs of key inputs like iron ore, coal, energy prices, electrodes, refractories and ferro alloys, operating EBITDA for the quarter surged by 64% YoY to `4,802 crores and EBITDA margin stood at 24.4%. The net profit after tax increased by 150% YoY to `2,284 crores.
The net gearing (Net Debt to Equity) stood at 1.30x at the end of the quarter (as against 1.21x at the end of Q1 FY2019) and Net Debt to EBITDA stood at 2.22x (as against 2.20x at the end of Q2 FY2019).
JSW Steel Coated Products:
During the quarter, JSW Steel Coated Products registered a production volume (Galvanised/Galvalume products) of 0.46 million tons and sales volume of 0.45 million tonnes. Revenue from operations and Operating EBITDA for the quarter stood at `3,144 crores and `88 crores respectively. It reported a Net Profit after Tax of `13 crores for the quarter.
US Plate and Pipe Mill:
The US based Plate and Pipe Mill facility produced 80,241 net tonnes of Plates and 19,877 net tonnes of Pipes, reporting a capacity utilization of 34% and 14%, respectively, during the quarter. Sales volumes for the quarter stood at 75,179 net tonnes of Plates and 19,884 net tonnes of Pipes. It reported an EBITDA of $5.50 million for the quarter.
Consolidated Financial Performance:
JSW Steel’s consolidated Revenue from operations increased by 25% YoY to `21,552 crores for the quarter. Operating EBITDA increased by 62% YoY to `4,906 crores, implying a margin of 22.8%. The Net Profit after Tax for the quarter increased by 150% YoY to `2,087 crores, after incorporating the financials of subsidiaries, joint ventures and associates.
Net debt during the quarter increased, mainly due to consummation of the previously announced acquisitions, increase in working capital due to higher volumes and prices, and impact of currency depreciation.
The Company’s Balance sheet continues to remain strong with consolidated Net gearing (Net Debt to Equity) at 1.46x and Net Debt to EBITDA of 2.35x at the end of the quarter.