JSW Steel reported a 64% drop in net profit for the 1st quarter of fiscal year 2024-25, amounting to Rs 867 crore (approximately USD 105 million), compared to Rs 2,338 crore (approximately USD 283 million) in the same period of fiscal year 2023-24, due to weak revenues and reduced production. This figure fell short of analysts' expectations, who had predicted a net profit of Rs 1,280 crore (approximately USD 155 million).
Despite a 2% revenue increase to Rs 42,943 crore (approximately USD 5.2 billion) in the 1st quarter of fiscal year 2024-25 from Rs 42,213 crore (approximately USD 5.1 billion) in the same period of fiscal year 2023-24, the company surpassed analysts' revenue estimates of Rs 42,334 crore (approximately USD 5.1 billion). However, JSW Steel's EBITDA dropped by 22%, to Rs 5,510 crore (approximately USD 667 million) from Rs 7,046 crore (approximately USD 853 million) in the same quarter last year, below the estimated Rs 5,781 crore (approximately USD 700 million). Consequently, EBITDA margins decreased to 12.8% in the 1st quarter of fiscal year 2024-25 from 16.7% in the same period of fiscal year 2023-24.
The company reported a consolidated crude steel production of 6.35 million tons for the quarter, marking a 1% decline compared to the same period last year and a 6% decrease compared to the previous quarter. Capacity utilization at Indian operations was 87% due to planned maintenance shutdowns at Dolvi and BPSL. Steel sales for the quarter were 6.12 million tons, up 7% compared to the same period last year but down 9% compared to the previous quarter. Domestic sales reached 5.31 million tons, reflecting a 14% increase compared to the same period last year and a 3% increase compared to the previous quarter. However, exports declined by 29% compared to the same period last year.
Comments
No comment yet.