JSW Steel Reports Consolidated Net Loss Of <span Class='webrupee'>₹</span>915 Cr In Q2

The company had posted a consolidated net profit of ₹7,179 crore in the year-ago period, JSW Steel said in a filing to BSE.

However, income during the quarter increased to ₹41,966 crore from ₹33,449 crore in the previous year.

Total expenses of the company climbed 78.7% to ₹43,354 crore, compared to ₹24,261 crore a year ago.

“The company’s performance during the quarter was significantly impacted by a sharp fall in steel prices, while the benefit of lower raw material prices will flow through with a lag," it said in a statement.

One-off items such as net realizable value or NRV provisions and inventory losses, mark-to-market unrealized loss on outstanding foreign currency loans and payment of export duty on exports further impacted the operating performance.

“Despite a challenging global economic scenario, we expect healthy steel demand growth in India during H2 FY23, which along with the flow through lower raw material prices, should aid the company’s performance in the coming quarters," JSW Steel said in a regulatory filing.

“The domestic steel industry witnessed demand growth with consumption at 27.93 Million tonnes in Q2 FY23, up by 13.0% YoY and 1.6% QoQ, supported by a strong automotive sector and demand from the infrastructure sector. However, the imposition of export duty on finished steel products in May 2022 had made exports unattractive, with Q2 FY23 exports (excluding semis) from India at 1.41 million tonnes, lower by 66.4% YoY and 35.6% QoQ," it added.

Shares of the company closed 1.31% lower at ₹620.25 apiece on the BSE today.

JSW Steel is the flagship business of the USD 22-billion diversified JSW Group, which has its presence in sectors such as energy, infrastructure, cement, paints, sports and venture capital.