JSW Steel Q2 Results: Profit plunges 85% on weaker realisations, one-time loss
JSW Steel, the country’s largest producer of steel, saw its profit plunge 85% on year in the September quarter weighed down by weaker realisations, and a one-time loss.
The steel-maker clocked in a consolidated net profit of Rs 404 crore in the Jul-Sep period as against Rs 2,773 crore a year ago. Revenue from operations were down by more than 11% on year at Rs 39,684 crore.
“China’s elevated steel exports at 84mt (up 21% YoY) between January and September has dampened global steel prices and margins,” the company said in a release.
India has imported 3.18 million tonne of steel in the September quarter, up more than 42% as compared to the previous year, while its exports fell by nearly a third to 1.27 million tonne. This has made the country a net importer of steel, with net imports of 1.91 million tonne of steel in the September quarter, and 2.62 million tonne in the first half of the current fiscal, the company said.
At a consolidated level, the company sold 6.13 million tonnes of steel during the quarter, which was 3% lower as compared to the previous year, and flat sequentially. Sales in the domestic market at 5.57 million tonnes, though, were the “highest in any quarter” the company said.
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