JSW Steel Q1: Net profit surges 189% to Rs 2,428 crore, tops estimate

The revenue figures missed analyst estimates of an increase of about 25 percent in the first quarter as compared with the same quarter last year.

JSW Steel reported a consolidated net profit of Rs 2,248 crore for the April-June quarter of FY24, on July 21, marking a 189 percent jump as compared to Rs 956 crore clocked in the year-ago period. The net profit topped the CNBC TV-18 poll estimate of Rs 770 crore.

The company's revenue from operations increased 11 percent to Rs 41,771  crore, primarily driven by higher volume growth. The revenue figures missed analyst estimates of an increase of about 25 percent in the first quarter as compared with the same quarter FY23.

The country's largest steel producers' earnings before interest, tax, depreciation and amortization (EBITDA) has surpassed expectations at Rs 7,046 crore as against analyst estimates of Rs 4,900 crore in the first quarter.

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EBITDA margins, a measure of a company's operating profit as a percentage of its revenue, soared nearly 17 percent as against analyst predictions of 12.5 percent. The company's operating EBITDA jumped 63 percent to Rs 7,046 crore as against Rs 4,309 crore posted in the year-ago period.

On the projects side, the management has said that the 5 MTPA brownfield expansion at Vijayanagar is progressing well, with civil works underway at the site. The construction activities of all packages are currently underway and equipment erection has commenced. The project is expected to be completed by the end of FY24.

Furthermore, JSW Steel Coated Products Limited commissioned the colour-coated steel line of 0.25 MTPA at Rajpura in May. The colour-coated steel line of 0.12 MTPA in Jammu and Kashmir is expected to be completed in Q4 FY24, the company said in an exchange filing on Jul 21.

The company's net debt has increased 12.5 percent to Rs 66,797 crore as against Rs 59,345 crore in the corresponding period last year.

The steel major also announced the appointment of Swayam Saurabh as the Chief Financial Officer. He will transition into the role of Chief Financial Officer in due course, the company said in a disclosure to the exchanges.

At 11:40 am, JSW Steel stock was trading at Rs 823 apiece on the NSE, up 3 percent from the previous day's close with 48 lakh shares changing hands as against one month average of 41 lakh shares.

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