Profit before exceptional items and tax declined 37.88% year on year to Rs 1,248.25 crore in Q4 FY23. Exceptional loss stood at Rs 146.42 crore in Q4 FY23.

EBITDA stood at Rs 2,240 cr in Q4 FY23 despite sharp increase in raw material costs.

The steel maker reported sales of 2.03 mt (down 2.4% YoY). The company reported production of 2.02 Mt during the quarter, which was 4.27% lower YoY. Exports accounted for 11% of the total sales volume in Q4 FY23 compare to 5% in Q3 FY23 reflecting a revival in exports post withdrawal of export duty.

Pellet production stood at 1.90 mt (down 4.04% YoY). External pellets sales declined to 0.04 mt (as compared with 0.14mt in Q4 FY22).

“During 4QFY23, Domestic consumption grew 6% QoQ at 32.6mt while steel production grew 5% QoQ to 33.0mt. Rebar prices moved strongly during the first half of the quarter but corrected sharply in the second half. However, key raw materials especially iron ore remained elevated through the quarter,” the company stated in regulatory filing.

On full year basis, the company's net profit declined 70.7% to Rs 2,426.83 crore in FY23 as compared with Rs 8,283.42 crore in FY22. Revenue rose 3.5% year on year to Rs 51,180.08 crore in FY23.

In FY23, India's crude steel production grew 5% YoY to 126.3mt while consumption grew strongly at 13% YoY to 119.9mt. Export duty was imposed on major steel products, iron ore & pellets in May 2022, which was subsequently withdrawn in Nov 2022, resulting in a 55% reduction in exports to 8.3mt. Imports on the other hand increased 45% to 7.0mt driven by strong domestic consumption.

Bimlendra Jha, managing director , said, “JSP's balance sheet is the strongest amongst the large integrated steel players in India and our leverage ratios are also amongst the lowest compared to the large integrated steel players in India despite volatile macro environment. Our focus on cash generation is one of the key factors driving our growth. We are on track with our stated growth plans and are working towards making our Angul Integrated steel complex as more cost competitive with the opening of coal mines at Utkal-c in near future.”

Meanwhile, the board has recommended a final dividend of Rs 2 per equity share for FY23

Jindal Steel & Power (JSPL) is a leading Indian infrastructure conglomerate with a presence in the steel, power, and mining sectors.