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JSW Steel Q3 profit plunges 71% on lower realisation

JSW Steel Q3 profit plunges 71% on lower realisation


Hit by large scale imports and sharp fall in prices, JSW Steel has reported that its December quarter net profit plunged 71 per cent to ₹719 crore against ₹2,450 crore logged in the same period last year, largely due to lower realisation.

Revenue was down at ₹40,793 crore (₹41,337 crore).

Overall expenses increased to ₹40,250 crore (₹38,815 crore).

The company’s operating EBITDA in India was down 20 per cent at ₹5,564 crore (₹7,180 crore), while EBITDA per tonne dipped to ₹8,516.

In India, the company’s revenue dipped to ₹39,440 crore (₹39,715 crore) while EBITDA slipped 20 per cent to ₹5,564 crore (₹6,923 crore) due to pricing pressures.

Bhushan Power & Steel revenue from operations was at ₹5,340 crore (₹5,030 crore) and EBITDA was down at ₹541 crore (₹780 crore). Net profit dipped of ₹11 crore (₹260 crore) for the quarter.

JSW Steel Coated Products recorded revenue of ₹8,600 crore (Rs 7,767 crore) and EBITDA of ₹496 crore (₹232 crore). With accrual of ₹73 crore from PLI incentives for the Tinplate facility, the division registered net profit of ₹170 crore against net loss of ₹52 crore.

The Electric arc furnace-based steel making facility in Ohio, US produced 2.32 lakh tonne of slabs during the quarter at a capacity utilisation of 64 per cent. It reported EBITDA loss of $16 million against loss of $6 million due to lower sales realisation.

The plate and pipe mill in Texas, US, reported capacity utilisation of 43 per cent and 8 per cent, respectively, in the quarter under review. It reported an EBITDA loss of $2 million (profit of $19 million) due to lower sales realisation as prices of plates declined during the quarter.

The Italy-based long product facility reported lower EBITDA of euro 1.85 million (profit of euro 17 million) for the quarter due to lower sales volumes and decline in realisation.

As of December quarter, net debt was down by ₹1,884 crore at ₹80,921 crore compared to September quarter on cash generated from operations and release of working capital.

JSW Steel expects the growth momentum to pick up in March quarter, supported by a recovery in government capital expenditure. Inflation is anticipated to ease in the coming months with improved food supplies, creating room for the RBI to begin monetary policy easing, it said.





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