JSW Eyes on 13.4 MnT Crude Steel Production in FY16

JSW is likely to ramp up its crude steel production by 6% and saleable steel sales by 7% in FY16.

JSW Steel, eyeing on its target of 13.40 MnT, is likely to increase its crude steel production by 6% in FY16. Moreover, the company has planned to increase saleable steel sales by 7% in FY16 to 12.90 MnT as compared to 12.03 MnT in FY15.

The company recently declared its result for Q4 FY15. It produced 12.63 MnT crude steel in FY15, closing with a 4% output growth and a 2% sales growth. Sparse domestic demand, fall in domestic & global prices and surge in import were the major reasons behind slow growth.

JSW’s Profit Down in Q4 FY15

The other side of the coin is that company’s net profit in Q4 FY15 was hit by declining steel prices. Its standalone net profit plunged down by 76.4% and the consolidated net profit by 84%. JSW Steel’s standalone sales decreased by 12% to INR 107.85 billion as compared to last year. However, lower material costs have contributed to better gross margin.

JSW’s Crude Steel Production & Sales

Figures in MnT
Source: JSW

Future Ahead

Albeit in the 4^th quarter, company’s net profit decreased sharply, JSW seems to be positive for volume growth in the next quarter. The company expects better realization in the coming quarter owing to falling iron ore prices and plans to keep increasing its share of value-added products.