Mumbai (India): JSW Steel Limited Friday announced that it will ramp up the capacity of iron ore mines in Odisha with an investment of Rs 3450 crore.
JSW Steel has 4 iron ore mine leases in Odisha that were acquired in auctions in FY2020, and JSW has successfully operationalized and ramped up all these mines in FY2021. The Company plans to enhance its mining capabilities and efficiencies at a capex of Rs 3,450 crores.
The Company press release said, “JSW Steel will enhance its own mining infrastructure to reduce reliance on outsourced mining, implement digitalization, and set up grinding and washing facilities to improve the quality of the ore which will lead to higher productivity at the steel-making operations.”
JSW Steel is going to integrate the Bhushan Power and Steel Limited (BPSL) with its steel businesses The Company in March 2021 has acquired 49% stakes in BPSL, which has a steel making facility at Jharsuguda in Odisha, through IBC process. While the payment to financial creditors in IBC process for 100% stake was ₹19,350 crores, the cash outgo from the company was ₹5,087 crores.
BPSL is an Integrated steel producer with liquid steel capacity of over 2.5mtpa in Jharsuguda, Odisha, primarily flat steel.
“With downstream facilities in Kolkata and Chandigarh, the
BPSL cquisition gives JSW Steel strategic presence in Eastern India,” said the press release.
JSW Steel Friday reported its results for the Fourth Quarter and the Financial Year ended 31st March, 2021.
Key highlights for Q4 FY2021:
Crude Steel production: 4.19 million tonnes, up by 6% YoY
Saleable Steel sales: 4.06 million tonnes, up by 10% YoY
Highest ever quarterly Revenue from operations: ₹24,398 crores, up by 60% YoY
Highest ever quarterly Operating EBITDA: ₹8,021 crores, up by 149% YoY
Highest ever quarterly Net profit after tax: ₹4,018 crores
Saleable Steel sales: 4.06 million tonnes, up by 11% YoY
Highest ever quarterly Revenue from operations: ₹26,934 crores, up by 51% YoY
Highest ever quarterly Operating EBITDA: ₹8,440 crores, up by 184% YoY
Highest ever quarterly Net profit after tax: ₹4,191 crores
Net Debt to Equity : 1.14x and Net Debt to EBITDA : 2.61x
Key highlights for the year FY2021:
Crude Steel production: 15.08 million tonnes, lower by 6% YoY
Saleable Steel sales: 14.88 million tonnes, lower by 1% YoY
Revenue from operations: ₹70,727 crores, up by 10%YoY
Highest ever annual Operating EBITDA: ₹19,259 crores, up by 54%YoY
Highest ever annual Net profit after tax: ₹8,393 crores, up by 59% YoY
Saleable Steel sales: 14.95 million tonnes
Revenue from operations: ₹79,839 crores, up by 9%YoY
Highest ever annual Operating EBITDA: ₹20,141 crores, up by 70%YoY
Highest ever annual Net profit after tax: ₹7,873 crores, up by 101% YoY
“The exceptional fourth quarter performance of the Company was due to strong domestic demand supplemented by exports, and improved steel prices. The 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. However, the emergence of a second wave of Covid in India has dampened the sentiment due to widespread localised lockdowns in several parts of the country.”
Standalone Performance Q4 FY2021:
The Company reported Crude Steel Production of 4.19 Million tonnes, which was higher by 6% YoY due to higher capacity utilization levels of ~93% for the quarter. Saleable Steel sales for the quarter was 4.06 Million tonnes, an increase of 10% YoY.
The Company’s Revenue from operations stood at ₹24,398 crores, up by 60% YoY led by higher sales volumes (up 10% YoY), higher value added steel volume (up 37% YoY) and increase in net sales realization of (up 39% YoY). The exports were at 21% of total sales mix in Q4 FY2021 vs 10% in Q3 FY2021, on the back of robust global recovery.
Operating EBITDA for the quarter stood at ₹8,021 crores, up by 149% YoY with an EBITDA margin of 32.9%, led by enhanced spreads, favourable product mix and continued upward trend in steel prices. This was partly offset by higher prices of iron ore, coal and natural gas. Overall volume of iron ore from captive mines in the fourth quarter constituted 42% of total iron ore requirement.
Exceptional items for the quarter and year ended 31 March 2021 represents impairment provision of ₹ 386 crores on value of loans given and interest receivable from overseas subsidiaries on the assessment of recoverable value of the US operations determined by independent external valuers using cash flow projections.
The Company reported net profit after tax of ₹4,018 crores for the quarter as against ₹2,829 crores for Q3 FY2021.
The Board has recommended dividend at ₹ 6.50 per equity share on the 241,72,20,440 equity shares of ₹1 each for the year ended March 31, 2021, subject to the approval of the Members at the ensuing Annual General Meeting.
The total outflow on account of equity dividend will be ₹ 1,571 crores, vis-a-vis ₹483 crores paid for FY2020.