Net profit of JSW Steel declined 37.77% to Rs 1593.00 crore in the quarter ended September 2020 as against Rs 2560.00 crore during the previous quarter ended September 2019. Sales rose 8.48% to Rs 18662.00 crore in the quarter ended September 2020 as against Rs 17203.00 crore during the previous quarter ended September 2019.

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The improvement in sales realisation, spurt in sale of coated products, favourable geographical and product mix helped to clock a sizeable growth in sales revenue.

Profit before tax (PBT) surged 264% to Rs 2,505 crore in Q2 September 2020 over Q2 September 2019. Total tax expense stood at Rs 910 crore in Q2 September 2020 compared with tax rebate of Rs 1,848 crore in the same period last year. The result was announced after market hours today, 23 October 2020.

JSW Steel's saleable steel sales for the quarter stood at 4.15 million tonne, rising 49% quarter on quarter (QoQ), triggered by revival in domestic demand. The volume of value added & special steel sales was at 51% of the total sales propelled by an increase in sales to auto and coated products segments. The retail sales increased by 177% QoQ supported by increase in branded sales.

Following the 66% capacity utilisation in the first quarter of fiscal year 2021 marked by nationwide lockdown, disrupted supply chains and steep drop in demand, second quarter witnessed a sharp rebound in business sentiments and a significant improvement in the domestic economic activities spurred by slew of monetary and fiscal initiatives, JSW Steel said in a press release.

The company achieved an average capacity utilisation level of 86% for the quarter. This is in line with that of pre-Covid levels of 85% achieved in the second quarter of the previous year. Crude steel production during the period stood at 3.85 million tonnes in Q2 September 2020.

JSW said crude steel production and saleable steel volumes for first half of FY2021 stood at 6.81 million tonnes and 6.92 Million tonnes respectively. The company assured that it is on course to meet the annual guidance of 15 million tonnes of saleable steel.

Shares of JSW Steel fell 1.44% to close at Rs 321.05 on BSE.

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).

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Shares of JSW Steel have surged 10.69% in six days from its previous closing low of Rs 285.2 on 12 October. The counter hit a 52-week high of Rs 318 yesterday, 19 October 2020. The stock is up 138% from its 52-week low of Rs 132.50 recorded on 3 April 2020.

Meanwhile, the Mumbai bench of the National Company Law Tribunal (NCLT) on Monday (19 October) approved JSW Steel to acquire bankrupt steel company Asian Colour Coated Ispat. JSW Steel has offered over Rs 1550 crore for the 1 million tonne steel plant. On 30 June 2019, the committee of creditors accepted JSW's bid through a majority vote. JSW bid includes Rs 1,525 crore payment to financial creditors and Rs 25 crore to operational creditors. The leading lenders of Asian Colour Coated include SBI, Punjab National Bank and JM Financials.

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).

On a consolidated basis, the steel major reported net loss of Rs 582 crore in Q1 June 2020 compared with net profit of Rs 1,008 crore in Q1 June 2019. Net sales slumped 41% to Rs 11,454 crore in Q1 June 2020 over Rs 19,407 crore in Q1 June 2019.

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JSW Steel Ltd rose for a fifth straight session today. The stock is quoting at Rs 316.15, up 1.64% on the day as on 12:49 IST on the NSE. The benchmark NIFTY is up around 0.81% on the day, quoting at 11857.5. The Sensex is at 40357.03, up 0.94%. JSW Steel Ltd has added around 16.53% in last one month.

Meanwhile, Nifty Metal index of which JSW Steel Ltd is a constituent, has added around 5.27% in last one month and is currently quoting at 2329.85, up 1.23% on the day. The volume in the stock stood at 119.22 lakh shares today, compared to the daily average of 90.91 lakh shares in last one month.

The benchmark October futures contract for the stock is quoting at Rs 316.45, up 1.41% on the day. JSW Steel Ltd is up 43.9% in last one year as compared to a 2.32% gain in NIFTY and a 3.45% gain in the Nifty Metal index.

The PE of the stock is 23.77 based on TTM earnings ending June 20.

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