Net profit of JSW Steel Ltd nearly trebled to ₹2,428 crore during the April-June quarter, beating analyst estimates. The steelmaker's consolidated net profit was ₹839 crore in the year-ago quarter.

JSW Steel's revenue from operations rose 11% year-on-year to ₹42,213 crore for the first quarter of FY24 as against ₹38,086 crore reported in the June quarter of the previous fiscal.

The company's operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter came in at ₹7,046 crore, while EBITDA margin was 16.7%, lower than 16.91% in Q4 FY23.

"The quarter-on-quarter fall in EBITDA was attributable to lower sales volumes, higher cost of iron ore partially offset by marginal increase in realisations on the back of higher export prices, and higher EBITDA from the overseas operations," the steelmaker says in its filing.

Consolidated crude steel production for the quarter stood at 6.43 million tonnes, higher by 11% year-on-year and lower by 2% Q-o-Q. The company had taken certain scheduled shutdowns at Indian operations during the quarter, hence the average capacity utilisation for Q1 FY24 was 92% compared to 96% in Q4 FY23, the earnings report says.

Steel sales for the quarter stood at 5.71 million tonnes, higher by 27% Y-o-Y & lower by 13% Q-o-Q, impacted by channel de-stocking, with exports also being impacted by delayed loading due to the cyclone on the western coast of India towards the end of the quarter, says filing says.

According to JSW Steel, investment activity is picking up as reflected in the healthy expansion in steel and cement consumption. India's finished steel consumption during Q1 FY24 was 30.3 million tonnes, up 10.2% Y-o-Y while crude steel production grew 8.4% Y-o-Y.

During the quarter, JSW Steel Coated Products, including its subsidiaries, registered a production volume of 0.98 million tonnes and sales volume of 0.94 million tonnes. Revenue from operations for the quarter stood at ₹8,179 crore.

Bhushan Power & Steel (BPSL) registered crude steel production of 0.74 million tonnes and sales volume of 0.69 million tonnes. Revenue from operations and operating EBITDA for the quarter stood at ₹5,474 crore and ₹703 crore, respectively.

The company's capex spend was ₹4,094 crore during Q1 FY24, against the planned capex spend of ₹18,800 crore for FY24.

"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 end of FY24," says JSW Steel.

"The strong economic momentum continues, driven by infrastructure spends by the government, and positive business and consumer sentiments. India is favourably placed to secure new manufacturing investments as global supply chains realign. Increase in offshoring and global capability centers (GCCs) being setup by multinational corporations and banks is a further positive for new employment generation as well as real estate and consumption. Healthy tax collections and lower energy prices are supportive for continued productive investments by the government in infrastructure," the company says.

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