JSW Steel's March quarter profit down y-o-y by 64%

18 May 2024 , 11:05 AM

JSW Steel’s shares fell nearly 2.5% on the BSE during Saturday’s special trading session, reaching a low of ₹885.50 after the announcement of a year-over-year (YoY) decline in net profit for Q4 FY24.

On Friday, JSW Steel posted a consolidated net profit of ₹1,299 crore for the quarter ended March 2024, a 64% drop from ₹3,664 crore in the same quarter the previous year. Revenue from operations for the quarter was ₹46,269 crore, nearly flat compared to Q4FY23 compared to previous fiscal. The company has incurred expenses of ₹44,401 crore, up by 2% from a year earlier. Other income also fell by 18% to ₹451 crore.

The company also reported that expenses associated with changes in inventories of finished and semi-finished goods, work in progress, and stock in trade rose sharply to ₹534 crore from ₹165 crore.

JSW Steel also reported an increase in exports, with 1.32 million tonnes exported in the quarter, representing 20% of sales from its Indian operations. This increase was driven by restocking demand in global markets.

On a standalone basis, JSW Steel’s net profit for the March quarter was ₹1,007 crore, marking a 64% YoY decline. Total revenue from operations fell 4.9% YoY to ₹35,341 crore.

In terms of production and sales, JSW Steel’s consolidated crude steel production for the quarter was 6.79 million tonnes. The company spent a consolidated capex of ₹3,503 crore in Q4 FY24 and ₹16,752 crore for the entire fiscal year. Standalone steel sales for the quarter were 5.69 million tonnes, showing a 9% QoQ increase and remaining flat YoY. Domestic sales were 5.16 million tonnes, down 2% QoQ and 5% YoY due to elevated imports.