Aided by a rally in prices and low-cost inventory, JSW Steel has posted much better profits in the March quarter. With joint ventures with the world’s two largest steel companies JFE and Posco, JSW Steel is bullish on future growth, though near-term prospects appear hazy due to the West Asia war. Jayant Acharya, Joint MD & CEO, JSW Steel, spoke to businessline on the way forward.
What are the main drivers for better Q4 performance?
The main drivers are strong operational performance on the back of better volumes. We were able to increase our domestic sales and liquidate inventories. We improved value added and premium and special product mix which has grown sharply. In spite of the BF3 (blast furnace) shutdown, we were able to do a 96 per cent capacity utilisation through better plant reliability. In last two years, we were working on various digitalization efforts and placed sensors on various parts at the plant for better plant reliability and preventive maintenance.
Has the rise in steel prices also helped?
Yes. However, steel prices in Q3 was one of the lows and touched six year low in December. Later, the safeguard and seasonal domestic demand picked up which resulted in price increases gradually between January and April. Internationally, also prices have improved and that. In Europe prices were at $830 a tonne and in US it was at $1,100, whereas in India it was about $620. Indian domestic price where it was three years back.
