JSW Steel reported a net loss of Rs 382 crore for Q1 FY 14 on July 31, 2013. They reported their results after the amalgamation with JSW Ispat Steel Limited and others, which had become effective since June 1, 2013 with appointed date of 1st July 2012. The present results therefore cannot be compared with the results of corresponding quarter last year because they include the figures which came after amalgamation.
JSW Steel Ltd, belonging to the JSW group, part of the O P Jindal Group, is one of the lowest cost steel producers in the world. The group has diversified interest in mining, carbon steel, power, industrial gases, port facilities, aluminum, cement, and information technology. JSW Steel is engaged in manufacturing of flat and long products viz. H R Coils, C R Coils, Galvanized products, Galvalume products, auto grade / white goods grade CRCA Steel, Bars and Rods. Incorporated in 1994, it has grown to about US $11 billion in little over fifteen years. JSW Steel Limited is one of the largest producers and exporters of coated flat products in the country with presence in over 100 countries across five continents.
During the April-June quarter 2013, the company commissioned its Micro Pelletisation Plant at Vijaynagar with a production capacity of 0.6 MnTPA. They also set a Waste Heat Recovery System at Blast Furnace-3 and 4th Stove in Blast Furnace-4 in Vijaynagar. They are also working in a progressive level for their other projects and running on schedule.
Their crude steel production of 2.8 MnT was highest ever with 34% Y-o-Y growth, while their saleable steel sales volume were at 2.5 MnT with 21% Y-o-Y growth.
Their Gross Turnover and Net Sales for Q1 were Rs 10,220 crore and Rs 9,235 crore respectively, showing a growth of 3% and 2% on Y-o-Y basis. Their Operating EBITDA was Rs 1,749 crore.
However, depreciating rupee value against USD resulted in an exceptional net translation loss of Rs 853 crore on restatement of foreign currency monetary items for quarter.
Mr. Seshagiri Rao, Joint Managing Director and Group CFO said about company’s performance that, “It is commendable to show volume growth in these challenging times when Indian steel demand grew only by 0.3% during April-June2013 and simultaneously register an improved operating margin of 18.7% sequentially from 18.3% in Jan-March2013. In spite of an acute shortage of iron ore, unreasonable prices in e-auction due to shortage of ore, falling global steel prices and threat of imports from countries enjoying concessional duties under FTA, the Company focused on cost reduction with a change in coal blend, improved fuel efficiency, use of waste gases and productivity improvements.”