JSW Steel Q1 Net Profit Crashes 64% To ₹867 Cr

JSW Steel posted its results for the quarter ended June after the market close on Friday.

What Happened: The steel major’s revenue for the quarter came in at ₹42,943 crore, up around 1.7% from the ₹42,213 crore reported in the same quarter last year. Net profit for the quarter stood at ₹867 crore, down around 64% from the ₹2,428 crore posted in the corresponding quarter of the previous year.

Steel sales for the quarter stood at 6.12 million tonnes, higher by 7% year on year and lower by 9% on a sequential basis. Domestic sales at 5.31 million tonnes were higher by 14% year on year and by 3% sequentially.

Sales volumes of the original equipment manufacturing and Industrial segment increased by 18% and the retail segment grew 8% year on year. Exports fell 29% and made up 10% of sales from the Indian operations for Q1 compared with 15% of sales reported in Q1 FY24.

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“Steel exports fell 51.1% quarter-on-quarter and 35.8% YoY to 1.49 million tonnes. India remained a net importer of steel in Q1 FY25, similar to FY24. Elevated imports, particularly from China and FTA countries, pose a challenge to the domestic steel industry,” the company stated.

The company’s net debt to equity stood at 0.97x at the end of the quarter, as against 0.93x at the end of the March quarter, and net debt to EBITDA stood at 3x, as against 2.62x at the end of the March quarter. Net debt as of June 30 stood at ₹80,199 crore, higher by ₹6,283 crore. The company said that the increase was due to capex on ongoing expansion projects and investment in working capital.

Consolidated crude steel production in the quarter stood at 6.35 million tonnes. The company reported a consolidated capital expenditure of ₹4,466 crores.

Price Action: JSW Steel’s share price was down 4.51% to close at ₹889.45 on Friday.

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