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JSW Steel posts Rs 2,760-cr profit in Q2 on strong domestic demand, lower costs

JSW Steel

On Friday, JSW Steel, India’s largest steelmaker by capacity, announced a second-quarter profit, boosted by strong domestic demand and decreased input prices. 

The company posted a combined net profit of Rs 2,760 crore in the third quarter ended September, up from a loss of Rs 848 crore the previous year. 

Total operating income increased 6.7% to Rs 44,584 crore. Total expenses fell by roughly 6% while major raw material costs fell by nearly 10%. 

According to the corporation, investments are being driven by the government’s emphasis on infrastructure and favorable consumer mood. 

JSW Steel

Total steel sales grew 10% to 6.34 million tons in the second quarter, with domestic sales increasing 8%. Exports, at 690,000 tons, accounted for 11% of sales from the India business, according to the corporation. 

Steel consumption was solid in the third quarter as construction and infrastructure-related activity continued despite a weak monsoon, according to analysts. Furthermore, decreasing coking coal costs, a major raw element for steel makers, aided profit growth, they added. 

After completed steel imports from China soared in the April-July period, India levied an anti-dumping charge on select Chinese steel for five years last month. 

“Downside risks to global growth remain, but the odds of a hard landing have receded,” JSW Steel said, adding that moderated inflation and improved global demand will boost recovery. 

However, the corporation expressed concerns over the Middle East situation. 

Shares dipped as much as 2.2% throughout the session, but then recovered. They finished 1.4% lower. 

The business also highlighted an unusual provision of Rs 389 crores as a result of the dismissal of the company’s writ petition in the Goa Green Cess dispute by the High Court of Bombay, Goa Bench. Debt rose to Rs 69,195 crore during the quarter, attributable mostly to borrowing additions resulting from the merger of JSW Ispat Special Products Limited (JISPL).