JSW Steel profit leaps in Q3

JSW Steel Ltd recently announced its results for the 3Q FY 2017and 9 month ended 31st December 2016.

JSW Steel recorded total income from operations of 15,312 crore for the quarter. The consolidated operating EBITDA for the quarter stood at 2,867 crore and EBITDA margin for the quarter stood at 20.5 per cent. The company reported net profit after tax of 730 crore for the quarter, after incorporating the financials of subsidiaries, joint ventures and associates.

Net gearing (Net Debt to Equity) at consolidated level was 2.11x at the end of the quarter (as against 2.15x at the end of 2Q FY2017), and Net Debt to EBITDA at consolidated level stood at 4.02x (as against 4.82x at the end of 2Q FY2017).

The current quarter was marked by a drag on steel demand due to liquidity issues after demonetisation that led to lower volume of production and sales sequentially. The impact on long products demand was more pronounced as activity levels in the construction and real estate sectors and retail sales slowed down considerably. In this backdrop, JSW Steel reported crude steel production of 3.86 million tonnes and saleable steel sales of 3.64 million tonne, both growing by 43 per cent year-on-year during the quarter. The company focused on enriching the product mix and increased value added and special products sales, which grew 38 per cent year on-year in 3Q FY 2017.

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