JSW Steel reported that crude steel production for the month of January 2021 was at 14.32 lakh tonnes compared to 14.10 lakh tonnes in January 2020, showing a growth of 2% YoY. The average capacity utilisation was 96% during the month of January 2021.

The production of flat rolled products declined 1% to 10.14 lakh tonnes while production of long rolled products rose 5% to 3.59 lakh tonnes in January 2021.

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JSW Steel Ltd rose for a fifth straight session today. The stock is quoting at Rs 402.9, up 0.65% on the day as on 12:44 IST on the NSE. The benchmark NIFTY is up around 0.39% on the day, quoting at 14953.95. The Sensex is at 50893.05, up 0.55%. JSW Steel Ltd has added around 0.3% in last one month.

Meanwhile, Nifty Metal index of which JSW Steel Ltd is a constituent, has added around 0.74% in last one month and is currently quoting at 3409.55, up 1.04% on the day. The volume in the stock stood at 58.99 lakh shares today, compared to the daily average of 76.95 lakh shares in last one month.

The benchmark February futures contract for the stock is quoting at Rs 404.5, up 0.86% on the day. JSW Steel Ltd is up 45.74% in last one year as compared to a 23.2% gain in NIFTY and a 28.13% gain in the Nifty Metal index.

The PE of the stock is 23.75 based on TTM earnings ending December 20.

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Net profit of JSW Steel rose 1170.62% to Rs 2681.00 crore in the quarter ended December 2020 as against Rs 211.00 crore during the previous quarter ended December 2019. Sales rose 23.38% to Rs 21487.00 crore in the quarter ended December 2020 as against Rs 17416.00 crore during the previous quarter ended December 2019.

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Consolidated revenue from operations grew by 21% to Rs 21,859 crore in Q3 December 2020 from Rs 18,055 crore in Q3 December 2019. The result was announced after market hours today, 22 January 2021.

Profit before tax jumped nearly 9 times to Rs 3,881 crore in Q3 December 2020 from Rs 436 crore in the corresponding period last year. Tax expense soared to Rs 1212 crore in Q3 December 2020 as compared to Rs 249 crore posted in Q3 December 2019.

JSW said that steel industry witnessed sharp demand recovery driven by restocking and higher demand from automotive, machinery, construction and infrastructure sectors aided by increased government spending. The company improved its average capacity utilization level to 91% in Q3 December 2020 from 86% in Q2 September 2020.

JSW Steel's saleable steel sales declined by 5% quarter on quarter to 3.95 million tonnes in Q3 December 2020. Domestic sales volume stood at 3.48 million tonnes, increasing 16% quarter on quarter and 13% year on year. The company said it calibrated its export volumes to 12% of total sales at 0.47 million tonnes.

The company reduced its net debt by Rs 1099 crore in Q3 December 2020. Consolidated net debt to equity stood at 1.29x in Q3 December 2020 as against 1.43x in Q2 September 2020.

Commenting on global outlook, JSW said, The outlook is positive for broad based growth across investment, manufacturing and services. Re-emergence and mutations of the virus and slower than expected pace of vaccination pose risks to the global growth outlook.

Indian steel demand has picked up well on the back of the strong economic momentum. Domestic steel mills have significantly reduced exports, to cater to this increased demand, and steel imports have increased sharply recently. The declining Covid cases in India and supportive fiscal and monetary policies bode well for stronger growth.

Meanwhile, the board has approved raising long term funds through issuance of non-convertible foreign currency/Rupee denominated senior unsecured fixed rate bonds upto $1 billion, in one or more tranches. The company will utilise the funds to meet capital expenditure, re-financing or any other permitted end use as per RBI's master direction on external commercial borrowings in case of issuance by the company. It will also utilize the funds for capital expenditure or repayment of outstanding loans to the company or general corporate purposes in case of issuance from domestic subsidiaries or overseas subsidiaries, in accordance with applicable.

JSW Steel is a flagship company of the JSW Group, an integrated steel manufacturer in India with an installed steel-making capacity of 18 million tonnes per annum (MTPA).

Shares of JSW Steel fell 4.37% to Rs 375.60 on Friday.

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