JSW Steel witnessed a 22.96% drop in its consolidated bottom line for the quarter ending March 2022 (Q4FY22). The company’s net profit to owners stood at ₹3,234 crore in Q4FY22 compared to ₹4,198 crore in the same quarter last year.
In the December 2021 quarter, JSW Steel’s PAT stood at ₹4,357 crore.
Meanwhile, the company garnered the highest ever revenue from operations, on a consolidated basis, to ₹46,895 crore in Q4FY22. Revenue climbed by 74% from ₹26,934 crore in Q4FY21 and surged by 23% from ₹38,071 crore in the preceding quarter.
On a consolidated basis, JSW Steel posted the highest ever quarterly crude steel production to 5.81 million tonnes, up by 11 % QoQ and 38% YoY. While saleable steel sales stood highest ever as well to 5.99 million tonnes increasing by 29% QoQ and 47% YoY.
In its audit report, JSW Steel said that during the fourth quarter of FY 2021-22, the global economy witnessed significant volatility arising out of the geopolitical tensions between Russia and Ukraine and continued supply chain disruptions. Even though India’s trade and economic activity strengthened following the steady fall in Covid cases and normalization of activity, inflation accelerated in line with global trends, exacerbated by the sharp rise in energy prices.
Further, JSW Steel added that the domestic steel industry continued to see steady demand from the government’s continued focus on public infrastructure. Investments in the construction and infrastructure sector continued to support steel consumption. Hence the steel industry witnessed an increase in finished steel consumption by 7 .2% in Q4 FY 2021-22 over the previous quarter.
JSW Steel highlighted that on the back of this strong demand environment, the Company delivered a strong set of numbers, achieving an average capacity utilization of 98% for the quarter vs 94% in Q3 FY 2021-22 from the existing standalone operations and further supplemented by ramp up of the Dolvi phase-II expansion.
For FY23, JSW Steel expects total combined volumes of crude steel at 25 million tonnes, while sales are forecasted at 24 million tonnes.
The company’s board has recommended a dividend at ₹17.35 per equity share on the 241,72,20,440 equity shares of ₹1 each for the year ended March 31, 2022, subject to the approval of the Members at the ensuing Annual General Meeting.
The total outflow on account of equity dividend will be at ₹4,194 crore vis-a-vis ₹1,571 crore paid for FY2021.
On BSE, JSW Steel closed at ₹548.65 apiece down by 0.54%.