JSW Steel Eyes Earnings Boost, Driven by Capacity Expansion

SEATTLE (Scrap Monster): JSW Steel reported better-than-expected financial and operational performance during Q4.

The standalone net sales and EBITDA surged higher by 60% and 149% respectively, when compared with the previous year. The standalone EBITDA per tonne soared by 127% over the year. The sales volumes were up by 10% and adjusted net profits skyrocketed by 270% year-on-year.

The company’s earnings at the consolidated level were mainly driven by improved realizations and a better product mix. The consolidated net sales and EBITDA were up by 51% and 184% respectively. The strong overseas operations contributed to the 155% year-on-year jump in consolidated EBITDA per tonne.

Going forward, the company foresees strong future prospects, supported by firm steel prices. However, the rapid spread of the second wave of Covid-19 pandemic is feared to impact domestic demand. This could be easily balanced with boosted exports. It expects huge volume growth, driven by commissioning of new capacities at Dolvi. The long-term growth prospects remain intact, mainly aided by recently announced 5 MT brownfield capacity expansion at Vijayanagar and the acquisition of BPSL.

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