JSW Steel Profit Jumps 13 Times In Second Quarter

JSW Steel Ltd. saw a whopping 13 times rise in its net profit for the July-September quarter in the current financial year.

Consolidated net profit for the company stood at Rs 726 crore compared to Rs 56 crore in the corresponding quarter last year. The number however, was below estimates of analysts tracked by Bloomberg, who pegged the figure at Rs 852.11 crore.

The company’s total income from operations grew 32 percent to Rs 14,420 crore compared to Rs 10,906 crore in the year ago period.

Earnings before interest, tax, depreciation and amortization was up 72 percent at Rs 2,988.18 crore compared to Rs 1,729.26 crore year-on-year. EBITDA margins for the company improved 487 basis points to 20.72 percent as against 15.85 percent.

Other Key Highlights

• The company’s board has approved a stock split of each share having a face value of Rs 10 into ten shares at a face value of Re 1 each.
• The board has also approved a fund raising exercise through issuance redeemable Non-Convertible Debentures worth Rs 2,000 crore via public issue or private placement.