JSW Steel Reports Results for First Quarter of 2020-21
Steel Limited has reported its results for the First Quarter ended 30th June, 2020. JSW Steel said “The COVID-19 outbreak and measures to contain it caused an abrupt disruption and slow down of economic activity. With significant supply chain constraints, shortage of workforce and with a view to ensure safety across all areas of operations, the Company scaled down/suspended operations towards the end of March 2020. The Company diligently instituted appropriate operating protocols to comply with all safety and social distancing requirements, secured necessary approvals from local authorities, and were able to commence operations across all locations towards the end of April 2020. Since then, operations have gradually been ramped up, and for the months of May and June our facilities operated at an average capacity utilization of 80%. The first quarter was marked by formidable challenges of disrupted supply chains, unparalleled drop in demand and activity levels in the domestic markets, uncertainty in seamless inbound and outbound logistics movement, and liquidity constraints. The Company undertook multiple initiatives to improve efficiencies by leveraging on technological and digitalisation tools, reducing fixed cost base, optimizing procurement costs, conserving liquidity, and ramping up sales and marketing efforts to find new markets and customers to remain competitive.”
Standalone Performance
Crude Steel production: 2.96 million tonnes
Saleable Steel sales: 2.80 million tonnes
Revenue from operations: INR 10,293 crores
Operating EBITDA: INR 1,429 crores
Net Loss after tax: INR 146 crores
Consolidated Performance
Revenue from operations: INR 11,782 crores
Operating EBITDA: INR 1,341 crores
Net loss after tax: INR 582 crores
The company enhanced exports to offset the loss of volumes in domestic market, liquidate inventory and improve cash flows. Export sales stood at 1.58 million tonnes for the quarter, a record high, with domestic sales at 1.21 million tonnes.
JSW Steel Coated Products - During the quarter, JSW Steel Coated Products registered a production volume of 0.30 million tonens and sales volume of 0.33 million tonnes. Revenue from operations and Operating EBITDA for the quarter stood at INR 2,049 crores and INR 28 crores respectively. It reported a Net loss after Tax of INR 31 crores for the quarter.
US Plate and Pipe Mill - The US based Plate and Pipe Mill facility produced 57,035 net tonnes of Plates and 4,175 net tonnes of Pipes, reporting a capacity utilization of 23% and 3%, respectively, during the quarter. Sales volumes for the quarter stood at 53,210 net tonnes of Plates and 4,611 net tonnes of Pipes. It reported an EBITDA Loss of USD 11.4 million for the quarter.
JSW Steel USA Ohio Inc (Acero) - The US based HR coil manufacturing facility produced 26,954 net tonnes of HRC during the quarter. Sales volumes for the quarter stood at 48,865 net tonnes. It reported an EBITDA loss of USD 12.54 million for the quarter. Recently, the Company has temporarily idled the operations at Ohio to undertake a furnace upgrade project which will improve reliability of equipment and lower conversion costs.
JSW Steel (Italy) Srl (Aferpi) - The Italy based Rolled long products manufacturing facility produced 85,131 tonnes and Sold 91,712 tonnes during the quarter. It reported an EBITDA loss of EUR 7 million for the quarter.
Source : STRATEGIC RESEARCH INSTITUTE