[Answered ]-What does this command actually do in django?

assuming you have run syncdb, and django.contrib.auth is among your apps, this will create a user that has the ‘superuser’ bit set. Such a user implicitly has all permissions, and most usefully, can always log into the admin interface for your project. You might want to do this if you enable auth sometime later than when you first started your django project (because it turned out you needed auth after all).