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by IANS |
Mumbai, Jan 24 (IANS) Sajjan Jindal-led JSW Steel on Friday reported a 70 per cent year-on-year decline in net profit to Rs 717 crore for the October-December quarter of the current financial year, compared to the corresponding figure of Rs 2,450 crore for the same quarter of the previous financial year.
The steel major’s revenue from operations declined by over 1 per cent year-on-year to Rs 41,378 crore for the third quarter.
The company recorded its highest-ever quarterly crude steel production at 7.03 million tonnes during the period. Saleable steel sales stood at 6.71 million tonnes.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) came in at Rs 5,579 crore for the quarter, according to its quarterly filing.
JSW Steel's balance sheet remains stable, with a net debt-to-equity ratio of 1.00x and a net debt-to-EBITDA ratio of 3.57 times.
The decline in steel prices due to the increase in cheap imports flowing into the country from countries such as China and Vietnam has impacted the bottomline.
Steel imports remained elevated in Q3, even though it declined 10.8 per cent QoQ to 2.83 million tonnes (MT).
However, for the first 9 months of FY25, imports increased 16.7 per cent year-on-year to 8.21 million tonnes. Exports in Q3 grew 44 per cent quarter-on-quarter to 1.82 MT, while exports for 9 months of FY25 fell 16.5 per cent to 4.58 MT, the company said.
Consequently, India remained a net importer of steel in Q3 as well for the first 9 months of FY25. To address rising steel imports, the Director General of Trade Remedies (DGTR) has initiated trade Investigations including safeguard and anti-dumping probes which are ongoing, the company statement added.
In Q3 FY25, India’s crude steel production rose by 3.5 per cent year-on-year to 37.38 MT. Steel consumption grew by 6.8 per cent year-on-year to 38.46 MT, witnessing some slowdown compared to the 13.6 per cent growth in H1.
A recovery in government capex is expected to aid growth in the steel sector during the next quarter.
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