JSW Steel saw a steep 64 per cent slide in consolidated net profit at Rs 845 crore for the June quarter, FY2024-25, on a fall in sales volume and realisation. It had posted a net profit of Rs 2,338 crore in the same quarter a year ago.
Consolidated crude steel production was 6.35 mt during the quarter, down by 1 per cent year-on-year and 6 per cent quarter-on-quarter. Capacity utilisation at Indian operations of JSW Steel was at 87 per cent. The company said steel realisations remained under pressure due to lower-priced imports, mainly from countries having Free Trade Agreements and more importantly from China.
JSW Steel pointed to the challenge from heightened imports to the domestic steel industry. However, the company remained sanguine about prospects for growth in domestic steel consumption in India, given the rise in activity levels across manufacturing and infrastructure development, coupled with positive consumer sentiment.
JSW Steel's exports dropped by 29 percent year over year and contributed 10 percent of sales from Indian operations in Q1 FY25 against 15 percent in Q1 FY24.
JSW Steel had said that the capital expenditure by the government was likely to recover in the coming quarters at the back of strong tax revenues and higher dividends from RBI that would shore up fiscal flexibility.
It has informed that its net debt increased by Rs 6,283 crore to Rs 80,199 crore as of June 30, 2024 from Rs 73,916 crore as of March 31, 2024. This increase is mainly for investments in under-execution expansion projects and working capital.
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