JSW Steel Q2 Results FY2023, Net Loss at Rs. 915 crores

On 21st October 2022, JSW Steel announced its second quarter results for the period ending 30th September 2022. 

Q2FY23 Performance updates:

-  The company reported saleable steel sales for the quarter at 5.74 million tonnes, higher by 28% QoQ, driven by higher domestic sales.
- Revenue from operations stood at Rs. 41,778 crores.
- EBITDA stood at Rs. 1752 crores and EBITDA margin of 4.2%. The fall in EBITDA is attributable to a reduction in the steel spread as the decline in sales realization was partly compensated by the reduction in prices of coal and domestic iron ore.
- The company reported a loss of Rs. 915 crores.
- The domestic steel industry witnessed demand growth with consumption at 27.93 million tonnes in Q2FY23, up by 13% YoY, supported by a strong automotive sector and demand from the infrastructure sector. However, the imposition of export duty on finished steel products in May 2022 had made strong exports unattractive with Q2FY23 exports from India at 1.41 million tonnes, lower by 66.4% YoY.

Business Highlights:

- The 5 mtpa brownfield expansion at Vijayanagar is progressing well with civil works underway at site.
- Two downstream projects, Continuous Annealing Line (CAL) at Vasind and Tinplate Line-2 at Tarapur, were commissioned during Q2FY23.
- The expansion at BPSL to 3.5 mtpa was completed during Q2FY23. The Phase-2 expansion from 3.5 mtpa to 5 mtpa remains on track for completion by FY24.
- The company’s capex spend was Rs. 2891 crores during Q2FY23 against the revised planned capex spend of Rs. 15000 crores for FY23.