JSW Steel reports highest ever quarterly Crude Steel production during Jan-Mar
MUMBAI (Scrap Register): JSW Steel Limited has recorded its highest ever Crude Steel production for the quarter at 4.10 million tons during January to March this year, up 28% year-on-year and 6% QoQ. It also achieved the highest ever quarterly sales volume of 3.96 million tonnes growing by 20%YoY and 9%QoQ.
The current quarter was marked by headwinds of a weak steel demand in the domestic market amidst poor liquidity post de-monetization as well as a surge in raw material prices. In this backdrop, the Company strategically enhanced export sales to offset domestic slowdown, with continued focus on enriching the product mix.
With the ramp up of newly commissioned facilities in a record time, for the full year FY2017 the company reported Crude Steel production growth of 26%YoY at 15.80 million tonnes, slightly ahead of the guidance for the year.
Saleable Steel sales volume for the year grew by 22%YoY to 14.77 million tonnes, as domestic steel demand, especially for long products, was adversely impacted by de-monetisation. However, sales of value added products grew by 17% YoY to 5.06 million tonnes for FY2017.
JSW Steel recorded Revenue from operations for the quarter of `16,952 crores. Despite the headwinds of competitive pressure in domestic market with a surge in domestic steel production, elevated level of imports and cost pressures due to raw material price volatility and availability, the Operating EBITDA for the quarter stood at `3,004 crores and EBITDA margin for the quarter stood at 19.0%. The net profit after tax stood at `1,003 crores for the quarter.
Revenue from operations for FY2017 stood at `56,913 crores, up 39% YoY. This was driven by industry leading sales volume growth of 22% YoY. Moreover, the Company undertook multiple performance improvement initiatives during the year – from diversified sourcing strategy, optimization of logistics costs, procurement costs, to focus on yields and productivity.
As a result, the Operating EBITDA for the year grew by 81%YoY `11,543 crores. The company posted a net profit of `3,577 for FY2017 as compared to the net loss of ` 3,530 crores for FY2016.