Moneycontrol Bureau
JSW Steel reported stellar performance in April-June quarter earnings, beating analysts' expectations on all counts. Profit has seen more than 52-fold increase at Rs 1,109 crore during the quarter against Rs 21.2 crore in year-ago period, boosted by operational performance despite higher tax cost. The share price, which hit a record high of Rs 1,762 (up 6.2 percent intraday), closed up 4.25 percent at Rs 1,730 on Wednesday.
Total income from operations grew by 1.9 percent to Rs 12,885.8 crore in June quarter from Rs 12,647.4 crore in corresponding period of last fiscal.
Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) shot up 91.7 percent to Rs 3,269.4 crore and margin expanded by 1190 basis points at 25.4 percent on yearly basis.
EBITDA per tonne was also strong at Rs 9,200, higher by 70.4 percent year-on-year and 58.6 percent quarter-on-quarter.
Tax expenses during the quarter increased significantly to Rs 450.7 crore from Rs 2.4 crore in year-ago period.
JSW Steel has reported highest ever quarterly crude steel production at 3.87 million tonnes (up by 14 percent YoY) and saleable steel sales at 3.34 million tonnes (up 8 percent).
"After a sharp drawdown of inventories in earlier quarters to meet customer commitments during planned shutdowns, the company replenished the finished goods stock in Q1FY17 to bring inventories to normalised levels," the company explained reason for highest ever production and sales.
It has increased production at blast furnaces at Vijayanagar & Dolvi, which were recommissioned in March 2016 quarter after modification and capacity expansion.
Subsidiary US Plate and Pipe Mill reported EBITDA loss of USD 5.45 million for the quarter.
Meanwhile, its board of directors in today's meeting has approved raising of long term funds through issuance of non-convertible senior unsecured fixed rate bonds in the international markets upto USD 750 million.
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