JSW Steel (JSWSTEEL) Q4 21/22 earnings summary

Executive summary

• FY22 delivered record consolidated crude steel output of 19.51 MnT, up 29% YoY, and sales of 18.18 MnT, up 21%; capacity utilisation averaged 89%.

• Consolidated revenue from operations rose 83% to ₹146,371 crore; operating EBITDA reached a record ₹39,007 crore, up 94%, and PAT was ₹20,938 crore.

• Dolvi’s 5 MTPA expansion was commissioned, doubling capacity to 10 MTPA; VASP made up 60% of sales volume, supporting product mix and margins.

Financial highlights

• Consolidated revenue from operations ₹146,371 crore, up 83% YoY; operating EBITDA ₹39,007 crore, up 94% YoY; EBITDA margin 26.7%.

• Consolidated PAT rose to ₹20,938 crore from ₹7,873 crore; diluted EPS was ₹85.49 versus ₹32.73 in FY21.

• Standalone revenue from operations was ₹118,820 crore, up 68%; operating EBITDA ₹31,868 crore, up 65%, with a 26.8% margin; PAT ₹16,702 crore, up 99%.

• Consolidated operating cash flow was ₹26,270 crore; net cash used in investing activities was ₹15,987 crore, including expansion and acquisition spending.

Outlook and guidance

• Domestic crude steel capacity is targeted to rise from 27 MTPA to 37 MTPA by FY25; planned capex over the next three years is ₹48,852 crore.

• Vijayanagar expansion is expected to take capacity from 12 MTPA to 19.5 MTPA by FY25; BPSL’s expansion to 5 MTPA is targeted for FY24.

• Indian steel consumption was forecast at 114 MnT for FY23, up 7.5%; domestic infrastructure and manufacturing initiatives support demand, while inflation and higher energy costs remain risks.

• Global steel demand was forecast broadly flat at 1,840.2 MnT in CY22, followed by 2.2% growth in CY23; price moderation was expected amid slower industrial growth and easing supply tightness.