JSW Steel clocks ~189% y-o-y growth in Q1FY24 net profit; stock hits new high

21 Jul 2023 , 01:55 PM

JSW Steel announced a consolidated net profit of Rs 2,248 crore for the April-June quarter of FY24, recording an 189% increase over the previous year’s figure of Rs 956 crore. 

Revenue from operations increased 11% year-on-year to Rs 41,771 crore, owing to stronger volume growth.

JSW Steel’s profitability exceeded Street expectations. In comparison to experts’ expectations of 12.5%, operating margin climbed to around 17%.

Consolidated crude steel output for the June quarter was 6.43 million tons, registering an increase of 11% year-on-year but a 2% decrease sequentially. Due to scheduled shutdowns at Indian operations during the quarter, average capacity utilization fell to 92% in Q1 of FY24 from 96% in Q4 of FY23.

Furthermore, steel sales for the period aggregated to 5.71 million tonnes, up 27% year-on-year but down 13% on a sequential basis. Steel sales were pulled down by channel de-stocking, with exports hampered by delayed loading owing to the storm on India’s western coast near the end of the June quarter, said the company.

At around 1.52 PM, JSW Steel was trading 1.21% higher at Rs 808.75, against the previous close of Rs 799.05 on NSE. The counter hit a new 52-week high of Rs 823.35.

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