JSW Steel FY21 profit rises 96% to Rs 7,911 crore; board recommends Rs 6.5 per share dividend

JSW Steel posted a 96 per cent rise in consolidated profit at Rs 7,911 crore for the financial year ended March 31, 2021. The Indian steelmaker had registered a net profit of Rs 4,030 crore in the previous fiscal, as per a regulatory filing by the company.

Total revenue from operations for FY21 stood at Rs 79,839 crore, up 9 per cent year-on-year (Y-o-Y) as compared to Rs 73,326 crore in FY20. The steel manufacturer posted the highest ever consolidated operating earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs 20,141 crore in FY21, up 70 per cent Y-o-Y.

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Saleable steel sales for the fiscal under review were 14.95 million tonnes, JSW Steel said in its filing, whereas revised crude steel production volume guidance for FY21 was 15.2 million tonnes. Sales of value added and special products (VASP) accounted for 52 per cent of total sales volumes for the year, while branded products' sales stood at 48 per cent of total retail sales.

JSW Steel said it exported 4.23 million tonnes of steel in FY21, an increase of 36 per cent on annual basis. Exports accounted for 28 per cent of total sales, as compared to 21 per cent in FY20, it further added.

For the quarter ended March 2021, JSW Steel recorded consolidated profit of Rs 4,198 crore. The company has posted a loss of Rs 672 crore in the year-ago period. Total revenue from operations during Q4 FY21 stood at Rs 26,934 crore, up 51 per cent as compared to Rs 17,887 crore in Q4 FY20.

JSW Steel saw its operating EBITDA rise 184 per cent to Rs 8,440 crore in the March quarter of FY21. Consolidated total saleable steel sales during the quarter under review rose 11 per cent Y-o-Y to 4.06 million tonnes.

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JSW Steel informed that its consolidated net debt to equity ratio stood at 1.14 times at the end of the Q4 FY21, against 1.48 times at the end of Q4 FY20. Net debt to EBITDA stood at 2.61 times during the period under review, as opposed to 4.5 times in the year-ago period. The company's debt has come down by Rs 858 crore even after spending on capital expenditure and acquisitions aggregating to around Rs 15,000 crore during FY 2021, JSW Steel said.

For FY22, JSW Steel has set its crude steel guidance at 22.94 million tonnes, whereas it is looking to achieve sales of 21.63 million tonnes.

Meanwhile, the JSW Steel board of directors has recommended a dividend of Rs 6.50 per equity share on 241,72,20,440 equity shares of Rs 1 each for the year ended March 31, 2021. The total outflow on account of the equity dividend will be Rs 1,571 crore, vis-a-vis Rs 483 crore paid for FY20. The dividend is subject to shareholders' approval at the upcoming annual general meeting.

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