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    JSW Steel's June quarter profit slides 86% to Rs 838 crore

    JSW Steel's June quarter profit slides 86% to Rs 838 crore

    JSW Steel's June quarter profit slides 86% to Rs 838 crore
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    By CNBC-TV18  IST (Published)

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    Shares of JSW Steel ended at Rs 582.35, down by Rs 5.85, or 0.99 percent on the BSE.

    Sajjan Jindal-led JSW Steel on Friday reported a 86 percent year-on-year (YoY) decline in consolidated net profit at Rs 838 crore for the first quarter that ended on June 30, 2022.
    In the corresponding quarter last year, the company had posted a net profit of Rs 5,900 crore. A CNBC-TV18 poll had predicted a profit of Rs 1,290 crore for the quarter under review.
    The company's consolidated revenue stood at Rs 38,086 crore during the period under review, up 32 percent against Rs 28,902 crore in the corresponding period of the preceding fiscal.
    At the operating level, consolidated gross earnings (EBITDA) declined 58.1 percent to Rs 4,309 crore in the first quarter of this fisal, compared to Rs 10,274 crore reported in the corresponding quarter last year. EBITDA margin stood at 11.3 percent in the first quarter of FY23 as compared to 35.5 percent in Q1 FY22. EBITDA stands for earnings before interest, tax, depreciation, and amortization.
    The company's consolidated Net Gearing (Net Debt to Equity) stood at 0.98x at the end of the quarter (as against 0.83x at the end of Q4 FY22), and Net Debt to EBITDA stood at 2.03x (as against 1.4Sx at the end of Q4 FY22). A significant portion of the increase in debt was mainly due to the locking up of working capital in inventory.
    The 5 MTPA brownfield expansion at Vijayanagar is progressing well, with civil works underway at the site. The project is expected to be completed by end of FY2024. The remaining downstream projects at Vasind and Tarapur are expected to be completed in Q2FY23, the company said.
    The expansion at BPSL to 3.5 MTPA is progressing well and is expected to be completed during Q2FY23. The Phase-II expansion (from 3.5 MTPA to 5 MTPA) is expected to be completed by FY24, it said.
    The company said the global economic outlook has weakened due to high inflation across most economies, with elevated energy and food prices affecting consumption.
    The ongoing Russia-Ukraine conflict and frequent Covid-related lockdowns in China have disrupted global supply chains and caused spikes in energy prices, it added.
    The results came after the close of the market hours.
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