JSW STEEL LIMITED
JSW Steel Ltd. is an Indian multinational steel company that is the flagship company of the diversified $12 Bn JSW group. JSW Group is the market leader in sectors like steel, energy, infrastructure, cement, education, and sports. JSW Steel was incorporated as Jindal Vijayanagar Steel Ltd on March 15, 1994. It started with a vision to revolutionize steelmaking in India with a single manufacturing unit in the early 1980s and managed to be one of the leading integrated steel companies in the country with an installed capacity of 18MTPA and has plans to scale up. With the largest product portfolio, the company is India’s largest steel exporter, shipping to 100+ countries across 5 continents by staying at the forefront of science and cutting-edge technology for the past 35 years.
The company has been widely recognized for its business and operational excellence with awards like World Steel Associations Steel Sustainability Champion (2019), Deming Prize for Total quality management at Vijaynagar, Salem works and Dolvi works, etc. They offer a versatile range of steel products: hot-rolled, cold-rolled, galvanized, color-coated products, wire rods, and special steel. Predominantly used in infrastructure applications, long products are an integral part of their product portfolio. With the government’s continued thrust on rural and urban infrastructure projects along with several effective policies in place, they have been able to take the ‘Make in India’ agenda forward. They also focus on being able to meet the UN’s sustainability development Goal 9 of building resilient infrastructure for sustainable growth.
The giant steelmaker has recently completed some major mergers and acquisitions: In March 2021, they also closed the acquisition of Bhushan Power and Steel (BPSL) for an amount of Rs.19,350 crore. This would take its total capacity to 22 MTPA. They also announced the completion of the Asian Color Coated Ispat’s (ACCIL) acquisition through JSW Steel Coated products (JSWSCPL), a wholly-owned subsidiary of the company. They have also completed buying the plates & coil mill business Welspun, for a sum of Rs.848.5 crore under a business transfer agreement.
To combat the deadly coronavirus, the JSW group has made an INR 100 crore donation to the PM-CARES fund and also provided further assistance through on-ground initiatives such as sourcing ventilators, funding, and setting up of COVID Care centers, isolation wards, and supply of essentials to communities in need. Currently, the company has a target to supply over 20,000 tonnes of liquid medical oxygen (LMO) by April 30 to help battle the oxygen shortage.
JSW steel has a diversified shareholding pattern with: Promoter & promoter group having (44.07% shares), FII’s (12.69% shares), DII (7.11% shares), Government (0.51% shares), Public (35.51%), and others (0.47% shares).
For the quarter ending 31-03-2021, the company has performed exceptionally on account of strong domestic demand for steel, they recorded a 23.12% hike in revenue from operations which stands at Rs.27,095 Cr against Rs.22,006 in Q3. The PAT of the company also rose by 57.02% and stands at Rs.4191 Cr against Rs.2669 Cr. from Q3. EPS for Q4 is recorded to be Rs.41.91.
Overall, there was a 2129.26% YoY growth for FY21. The company posted an all-time high consolidated operating profit of Rs.8,440 crore, which was up by 184% YoY basis. The Board of Directors has declared a dividend of Rs.6.5 per share for the year ending 31-03-2021. The steel producer showed a stellar performance and the board is optimistic for its future plans.
