JSW Steel posts highest ever profit at Rs 4,198 crore in Q4

JSW Steel on Friday reported its highest ever quarterly net profit at Rs 4,198 crore for the March quarter (Q4 FY21) as compared to Rs 231 crore in the corresponding quarter of pervious year (Q4 FY20).

It was led by strong domestic demand supplemented by exports and improved steel prices.

JSW Steel also reported its highest ever quarterly revenue from operations at Rs 26,934 crore for the quarter ended March, up 51 per cent from Rs 17,887 crore in the same period last year.

"Global and Indian economies showed remarkable recovery supported by large fiscal and accommodative monetary stimulus extended by governments and central banks that facilitated faster V-shaped recovery," the company said in a statement.

However, it added, the emergence of a second wave of Covid-19 in India has dampened the sentiment due to widespread localised lockdowns in several parts of the country."

The board of directors has recommended a dividend of Rs 6.50 per equity share of Re 1 each for FY21.

The operating profit or EBITDA for the March quarter came at Rs 8,440 crore, up 184 per cent year-on-year. The company said its debt has come down by Rs 858 crore even despite spending on capital expenditure and acquisitions totalling Rs 15,000 crore in FY21.

JSW Steel reported crude steel production of 4.19 million tonnes, up 6 per cent year-on-year, due to higher capacity utilisation of 93 per cent in Q4 FY21. Saleable steel sales were up 11 per cent at 4.06 million tonnes.

Meanwhile, the board of directors approved issuing equity shares of the company by way of a rights issue for an amount not exceeding Rs 5,000 crore.

It also approved issuance of non-convertible debentures with warrants which are convertible into or exchangeable with equity shares for an amount not exceeding Rs 7,000 crore to qualified institutional buyers.

JSW Steel is the flagship business of 12 billion dollar JSW Group with an installed capacity of 18 million tonnes per year. It is the only Indian company ranked among the top 10 steel producers in the world by World Steel Dynamics for the last 10 consecutive years.

( With inputs from ANI )