JSW Group flagship, JSW Steel, has reported a 12.70 times growth in consolidated profit to Rs 2,681 crore against a profit of Rs 211 crore in the corresponding period, driven by robust operating income amid strong demand environment.
Revenue from operations in Q3 FY21 rose 21.1 percent year-on-year to Rs 21,859 crore, with 13 percent YoY growth in domestic volumes at 3.48 million tonnes.
The domestic steel industry witnessed sharp demand recovery driven by destocking and higher demand from automotive, machinery, construction and infrastructure sectors aided by increased government spending, said the company in its BSE filing.
On the back of this strong demand environment, JSW Steel said it improved average capacity utilisation level of around 91 percent for the December quarter against around 86 percent in September quarter 2020.
The company achieved crude steel production of 4.08 million tonnes in Q3 FY21, registering a growth of 6 percent quarter-on-quarter (QoQ) and 2 percent year-on-year (YoY).
JSW Steel said it calibrated export volumes to 12 percent of the total sales at 0.47 million tonnes, in order to service the Indian market. The company reduced inventories by 0.47 lakh tonnes during December quarter 2020.
On the operating front, its earnings before interest, tax, depreciation and amortisation (EBITDA) shot up 142.6 percent to Rs 5,946 crore and margin expanded by 1,363 bps to 27.2 percent compared with corresponding period.
The company reduced its net debt by Rs 1,099 crore in Q3 FY21.
The crude steel production and standalone saleable steel sales volumes for nine months of FY21 stood at 10.89 million tonnes and 10.82 million tonnes.
"We are on course to meet the annual guidance of 15 million tonnes of saleable steel sales, however, it is expected that crude steel production guidance achievement will be around 95 percent mainly due to constraints on iron ore availability in the country," said the company.
JSW Steel shares gained around 40 percent during the December quarter which was also its return in calendar 2020 following an increase in steel prices amid improving demand.