regular-article-logo Saturday, 22 June 2024

JSW Steel Ltd face 46 per cent drop in profit after tax to Rs1,322 crore in quarter ending March

Revenue from operations on a consolidated basis came down marginally to ₹46,269 crore compared with ₹46,962 crore in the same period of 2022-23

Our Special Correspondent Calcutta Published 18.05.24, 11:46 AM
Representational image

Representational image File image

Sajjan Jindal-led JSW Steel Ltd reported a 46 per cent drop in profit after tax to 1,322 crore in the quarter ending March compared with 2,450 crore in the fourth quarter of 2022-23 as the company dealt with lower net sales realisation and higher cost led by coking coal prices.

Revenue from operations on a consolidated basis came down marginally to 46,269 crore compared with 46,962 crore in the same period of 2022-23.


The flat topline was reported despite total sales volume were higher by 3 per cent year-on-year, underscoring compressed margin. JSW Steel disclosed that net sales realisation was down by 6 per cent year-on-year.

For the full year, PAT more than doubled to 8,973 crore compared with 4,139 crore in 2022-23.

Revenue from operations went up 5.45 per cent to 1,75,006 crore last fiscal compared with 1,65,960 crore. The board announced a dividend of 7.3 per share.

Even though JSW maintained that healthy steel demand growth continues in India, aided by infrastructure spend by the government and tailwinds from major steel consuming sectors, the company identified import from China as a challenge to the domestic industry.

Despite India turning net importer of steel, JSW said it achieved combined annual production of 26.68 million tonnes (mt) against guidance of 26.34mt and sales of 25mt, meeting the target. The company has guided production of 28.4mt and sales of 27mt for 2024-25.

Updating on the expansion plans, JSW said a 5mt additional capacity at Vijaynagar, Karnataka was commissioned in March and the full ramp up is expected by the third quarter of this fiscal.

Additionally, the ramp up of a 1.5mt expansion at subsidiary Bhushan Power & Steel Ltd is expected by the second quarter of this fiscal.

The consolidated capex of the company stood at 16,752 crore and it guided a capex of 20,000 crore in 2024-25.

From a capacity of 36.2mt in India and the US, it is expected to reach 43.5mt by September 27.

The board, which met Friday, also approved acquisition of a yet to be developed coking coal mine in Mozambique for $73.75 million or 612 crore.

Follow us on: