JSW Steel posts 84% y-o-y decline in Q2 net profit

25 Oct 2024 , 04:11 PM

JSW Steel Ltd reported an 84% fall in consolidated net profit to ₹439 Crore in the second quarter, compared to ₹2,760 Crore in the previous year’s period.

Revenue from operations in the reporting period declined 11% year on year to ₹39,684 Crore.

JSW Steel’s revenue for the six months ended September 30, 2024 was ₹81,441 Crore, a decrease from ₹85,605 Crore the year before. The net profit for the half-year period declined drastically to ₹1,271 Crore from ₹5,201 Crore previous year.

Higher input costs and operational issues have hurt the company’s bottom line, resulting in a profit reduction despite good revenue figures.

The results come as domestic HRC prices in India have fallen 39% since their peak in April 2022, according to trading firm Nomura in a report released on October 2.

While domestic demand remains strong, driven by increased consumption in the automotive and construction industries, Nomura analysts predict that poorer realisations would put pressure on leading steel manufacturers’ profits.

The September quarter is traditionally the weakest for steelmakers because monsoons impede construction work. This year’s issues were exacerbated by an influx of cheaper Chinese goods into the market.

Steel companies, on the other hand, expect relief from dumping as a result of China’s most recent stimulus efforts to boost its economy.

At around 2.30 PM, JSW Steel was trading 1.71% lower at ₹941.70, against the previous close of ₹958.10 on NSE. The counter touched an intraday high and low of ₹959.95, and ₹926.80, respectively.

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