MAM
JSW Steel Q2 net profit falls 37% to Rs 1,595 crore
MUMBAI: JSW Steel reported a net profit of Rs 1,595 crore for second quarter (July-September) of FY21, down 37 percent against a net profit of Rs 2,536 during the same period last year. However, it’s a far cry from the performance in the June quarter when it had reported a net loss of Rs 582 crore.
Total revenue increased by 9.63 per cent (y-o-y) to Rs 19,264 crore.
The company achieved an average capacity utilization level of around 86 per cent for the quarter ended 30 September, 2020. This is in line with that of pre-Covid levels of 85 per cent achieved in the second quarter of the previous year.
Crude steel production during the period stood at 3.85 million tons. Saleable steel sales for the quarter was 4.12 million tons, which grew around 47 per cent (q-o-q) triggered by revival in domestic demand.
However, in the first quarter of financial year 2021, domestic steel demand rebounded from recent lows and gained momentum, while the company moderated its exports to 28 per cent from 57 per cent with higher sales in the domestic market.
The Crude Steel production and saleable steel volumes for the first half of financial year 2021 stood at 6.81 million tons and 6.92 million tons respectively. The company is on course to meet the annual guidance of 15 million tons of saleable steel.
The Company's revenue from operations stood at Rs 16,797 crores registering a growth of 63 per cent (q-o-q). The improvement in sales realisation, spurt in sale of coated products, favourable geographical and product mix helped to clock a sizeable growth in sales revenue. The operating costs were down primarily on account of lower prices of imported coal, better operating leverage and savings in procurement costs and fixed overheads. However, this benefit in cost was partially offset by increase in the iron ore prices. The increase in the net sales realization and fall in operating cost led to an EBITDA margin of 24.9 percent.
As a result, operating EBITDA for the quarter stood at Rs 4,176 crores. The company reported net profit after tax of Rs 1,692 crores for the quarter. The company's net gearing (net debt to equity) stood at l.19x at the end of the quarter as against l.26x at the end of lQ FY2021 and Net Debt to EBITDA stood at 4.14x as against 4.77x at the end of lQ FY2021.
During the quarter, JSW Steel Coated Products registered a production volume of 0.51 million tons and sales volume of 0.61 million tons. Revenue from operations and operating EBITDA for the quarter stood at Rs 3,782 crores and Rs 288 crores respectively. It reported a Net profit after Tax of Rs 172 crores for the quarter.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
