PremiumSajjan Jindal-led JSW Steel on Friday reported a 87% year-on-year decline in consolidated net profit after tax at ₹915 crore for the quarter ended September, 2022, mainly due to a sharp fall in steel prices. It was ₹7,179 crore in the year-ago period.
Brokerages said that JSW Steel, one of the major steel producers of the country, will post a 90% decline in consolidated profit after tax to about ₹700 crore in the quarter ended September.
The steelmaker reported a 28% on-year jump in consolidated total revenue from operations to ₹41,778 crore, as against ₹32,503 crore in the same quarter last year.
Net sales of the company stood at ₹41,122 crore in the September quarter, up 29% from corresponding period last year, which was ₹31,909 crore.
Total expenses climbed 78.7% to ₹43,354 crore, compared to ₹24,261 crore earlier.
The consolidated crude steel output fell 3% sequentially to 5.68 million tonnes, mainly due to extended maintenance shutdowns and subdued demand in the US.
The steelmaker's performance during the quarter was significantly impacted by a sharp fall in steel prices, inventory losses and mark-to-market losses amid currency fluctuations.
"Despite a challenging global economic scenario, we expect healthy steel demand growth in India during H2 FY23, which along with the flow through lower raw material prices, should aid the company's performance in the coming quarters," JSW Steel said in a regulatory filing.
Shares of the company closed 1.31% lower at ₹620.25 apiece on the Bombay Stock Exchange (BSE) today.