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JSW Steel Q2 profit falls 37 percent to Rs 1,595 crore

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JSW Steel Q2 profit falls 37 percent to Rs 1,595 crore

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The company achieved production of 3.85 million tonnes during the quarter ended on September 30. With this, JSW Steel achieved average capacity utilization of 86 percent in the quarter.

JSW Steel Q2 profit falls 37 percent to Rs 1,595 crore
JSW Steel on Friday reported an over 37 percent decline in consolidated net profit at Rs 1,595 crore for the quarter ended September 30, 2020. The company had posted a Rs 2,536 crore profit for the same quarter a year ago, JSW Steel said in a BSE filing.
Total income stood at Rs 19,416 crore as against Rs 17,728 crore in the corresponding quarter of the preceding fiscal. Expenses were at Rs 16,958 crore as against Rs 17,025 crore in the year-ago quarter.
The company also informed exchanges about acquiring four mine blocks in the auctions held by the Odisha government in February. JSW Steel has signed the mining development and production agreements with regard to all the four blocks and executed the lease deeds.
"Acquisition cost incurred for the mines such as stamp duty, registration fees, and other such cost amounting to Rs 817 crore have been capitalized as intangible assets. The company has also paid upfront premium payment amounting to Rs 1,290 crore, which would be adjusted against the premium payment due to the government," it said.
Mining operations have started at all the said blocks. JSW Steel further said a resolution plan submitted by its wholly-owned subsidiary JSW Steel Coated Products Ltd for Asian Colour Coated Ispat Ltd (ACCIL), has been approved with certain modifications by the National Company Law Tribunal, New Delhi.
ACCIL manufactures downstream steel products at its facilities located in Khapoli in Maharashtra and Bawal in Haryana.
On the impact of COVID-19, the company said the outbreak of the virus and the measures to curtail it caused disturbances and slowdown of the economic activity. The group's operations, too, were impacted in the June quarter as the company had to scale down its operations across all plants due to reasons like supply chain constraints, shortage of workforce, etc.
However, with relaxations provided by the government, the company gradually ramped up its production levels.
The company achieved production of 3.85 million tonnes during the quarter ended on September 30. With this, JSW Steel achieved average capacity utilization of 86 percent in the quarter.
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