JSW Steel's production in May jumps 122 per cent MoM

JSW Steel Limited managed to enhance its capacity utilization level in May 2020, as the lockdown restrictions started easing out. As against 38 per cent in April, it went up to 83 per cent in May.

Its crude steel production grew over 122 per cent MoM to 12.48 lakh tonnes from 5.63 lakh tonnes in April 2020. Nonetheless, the production declined 14.1 per cent YoY from 14.53 lakh tonnes in May 2019. Meanwhile, the production of its 'flat' rolled products grew 163 per cent MoM to 9.05 lakh tonnes in May from 3.44 lakh tonnes in April 2020. On YoY basis, it dropped 11 per cent from 10.17 lakh tonnes in May 2019. On the other hand, its 'long' rolled products grew by 124 per cent MoM to 2 lakh tonnes from 0.89 lakh tonnes in April 2020. On YoY basis, the production dipped 44.1 percent from 3.58 lakh tonnes in May 2019.

In Q4FY20, there was a decline in production and it was able to achieve only 97.3 per cent of the production guidance it had projected for FY20, due to the lockdown situation that ensued due to COVID-19. In the opinion of the company's management, the demand outlook for the near term remains subdued as majority of its customers are across the automotive, engineering, construction and capital good sectors which need time to recover. It has decided to direct its focus to the export markets to improve utilisation, defray fixed costs and generate cash flows.

The company has also made changes to its capex plans and is willing to shell out Rs 9,000 crore in FY21 compared to the previous guidance of Rs 16,340 crore. During FY20, JSW Steel's consolidated revenue was at Rs 73,326 crore, down 13 per cent YoY. EBITDA and PAT for the year came in at Rs 11,873 crore and Rs 3,919 crore, having declined 37 per cent and 48 per cent respectively.

JSW Steel's stock closed at Rs 192.25 on Tuesday, 0.88 per cent lower than the previous close of Rs 193.95. During the day, it made an intraday high of Rs 197.70 on BSE.