It does look like metals demand is picking up due to a mix of domestic and international demand driven factors. For the Sep-20 quarter, JSW Steel reported a 9.63% increase of sales revenues at Rs.19,264 crore. JSW is one of the largest steel manufacturers in India.
For the Sep-20 quarter, the operating profits were sharply up by 95% at Rs.3,265 crore while the net profits fell sharply by 37% at Rs.1,595 crore. However, this is more due to the massive deferred tax credit that JSW Steel got of Rs.1976 crore in Sep-19 making the comparison rather incompatible.
On the margins front, the Sep-20 quarter saw operating profit margins expand by 740 basis points to an attractive 16.95% while NPM was lower at 8.28% due to the deferred tax benefit effect mentioned in the previous paragraph.
It is clear that JSW Steel has largely recouped its pre-COVID levels of operating sales and profits and has actually done better than that. The sharp improvement in operating performance was assisted by a sharp fall in the cost of materials due to weakness in input prices globally.
It reported 30% sequential growth in crude steel output at 3.85 MT and huge 47% growth in saleable steel at 4.12 MT. JSW lowered its debt by Rs.1,635 crore in the Sep-20 quarter reducing the debt/equity ratio to 1.43x. This also resulted in an improvement in the net cash from operations in the H1 of FY21.
It does look like metals demand is picking up due to a mix of domestic and international demand driven factors. For the Sep-20 quarter, JSW Steel reported a 9.63% increase of sales revenues at Rs.19,264 crore. JSW is one of the largest steel manufacturers in India.
For the Sep-20 quarter, the operating profits were sharply up by 95% at Rs.3,265 crore while the net profits fell sharply by 37% at Rs.1,595 crore. However, this is more due to the massive deferred tax credit that JSW Steel got of Rs.1976 crore in Sep-19 making the comparison rather incompatible.
On the margins front, the Sep-20 quarter saw operating profit margins expand by 740 basis points to an attractive 16.95% while NPM was lower at 8.28% due to the deferred tax benefit effect mentioned in the previous paragraph.
It is clear that JSW Steel has largely recouped its pre-COVID levels of operating sales and profits and has actually done better than that. The sharp improvement in operating performance was assisted by a sharp fall in the cost of materials due to weakness in input prices globally.
It reported 30% sequential growth in crude steel output at 3.85 MT and huge 47% growth in saleable steel at 4.12 MT. JSW lowered its debt by Rs.1,635 crore in the Sep-20 quarter reducing the debt/equity ratio to 1.43x. This also resulted in an improvement in the net cash from operations in the H1 of FY21.