The steelmaker reported a 69 per cent on-year jump in consolidated total revenue from operations to Rs. 32,503 crore, which was also above Street’s estimate.
Both the topline and bottomline reported by the company were the highest ever quarterly figures in its history reflecting the strong upswing in the domestic steel industry.
During the quarter, the company’s cost of raw material surged 48 per cent year-on-year to Rs. 12,329 crore reflecting the impact of the ongoing commodity inflation in the global economy.
JSWW Steel said that in the standalone business sales in the quarter were impacted by some inventory build-up due to start of the company’s new downstream facilities and increase inventories at the ports.
The topline of the company was largely boosted by the diversion of saleable steel towards export markets as the domestic demand environment remained muted due to monsoons. Construction activity across the country generally comes to a halt due to the rainy season.
JSW Steel continued to reduce the leverage on its balance sheet as net gearing declined to 0.92 times in the reported quarter from 1.04 times in the previous quarter. The company said that it spent Rs. 3,639 crore as capital expenditure in the September quarter as against planned expenditure of Rs. 18,240 crore for the financial year.
Shares of JSW Steel ended 1.3 per cent lower at Rs. 676 on the National Stock Exchange.
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