JSW Steel, India’s leading steelmaker, posted a steep 85% year-on-year decline in net profit for the September quarter, with profits falling to Rs 404 crore compared to Rs 2,773 crore in the same period last year. The drop in profit was influenced by a one-time loss of Rs 342 crore tied to the surrender of a mining lease, coupled with an increased tax rate.
The company’s revenue from operations stood at Rs 39,684 crore, marking an 11% decline from Rs 44,584 crore in the year-ago quarter, and also lower than its previous quarter’s revenue of Rs 42,943 crore. EBITDA also saw a decrease, down to Rs 5,437 crore from Rs 7,886 crore a year earlier, with EBITDA margins slipping to 13.7% from 17.7% in Q2 FY24.
JSW Steel shares traded with a nearly 2% drop, at around Rs 939.80 per share, on the National Stock Exchange as of 2:30 pm on October 25. Despite the recent dip, JSW Steel shares have delivered over 25% returns in the past year and have risen by 7% in 2024.
The September quarter often proves challenging for steelmakers due to reduced construction activities during the monsoon season. However, this year, issues were intensified by an influx of cheaper Chinese steel imports, which have been impacting the domestic steel market.
Looking ahead, steel companies are hopeful for some respite as China’s latest economic stimulus measures could curb the country’s need to dump excess steel into the global market.
(This story is still unfolding, and additional details will be provided as they become available.)
Story first published: Friday, October 25, 2024, 14:47 [IST]
fbq('track', 'PageView');
Original news source Credit: www.goodreturns.in
You must be logged in to post a comment Login