Sajjan Jindal-led JSW Steel reported a 48 percent decline in consolidated net profit for the March 2019 quarter mainly on the back of higher cost of production and decline in realisations. The company's consolidated total income during January-March period was Rs 22,421 crore as against Rs 21,381 crore a year ago. The total expenses rose to Rs 20,058 crore from Rs 17,794 crore during the quarter ended March 2018.
The total income from operations and net profit for the entire fiscal increased to Rs 84,757 crore and Rs 7,524 crore, respectively, from Rs 73,211 crore and Rs 6,113 crore in 2019-18.
Seshagiri Rao, joint managing director, JSW Steel, in an interview with CNBC-TV18 spoke about the business outlook and details regarding the National Company Law Tribunal (NCLT) litigations.
All hearings regarding litigations in NCLT were completed and the company was expecting judgement on Bhushan Power and Steel in the next few days, Rao said. If the NCLT does not change the resolution plans then the company would take a call on the acquisition, he said.
When asked if the company was planning on going global, Rao said JSW Steel's vision is to be a 40-45 million tonne company in India and globally it is planning become a 10 million tonne company.
"For the current fiscal, we have planned a capex of Rs 15,700 crore. With the fresh approval of Rs 5,700 crore, we are now implementing a cumulative capex spend of Rs 48,715 crore (net of capex projects put on hold during the year) over FY18-FY21," Rao added.
He said the new approval of Rs 5,700 crore investment was mainly to be utilised for downstream investment for about Rs 1,000 crore, Rs 2,200 crore towards cost saving projects and Rs 2,000 crore for mining.
"The funds will be utilised for completing the projects including the brownfield expansions undertaken by the company. These projects are planned to be funded by a mix of debt and internal accruals. Once we complete our expansion plans by 2020, the capacity will increase to 24 MT (million tonne per annum)," Rao added.