JSW steel experiences a Rs 915-crore Q2 loss because of high input prices, reduce metal expenditures

Mumbai: JSW neighborhood flagship JSW steel on Friday mentioned a Rs 915-crore consolidated loss for the July-September quarter, hit with the aid of the affect of excessive-can charge stock and lessen metal fees.

The enterprise reported a consolidated income of Rs 7,179 crore in the corresponding quarter ultimate year.

profits more suitable with the aid of 29% yr-on-yr to Rs forty one,778 crore. however, excessive input prices meant that the profits earlier than pastime, tax, depreciation and amortisation (EBITDA) declined through eighty three% on-12 months to Rs 1,752 crore. EBITDA margin narrowed from 32% to 4.2%.

"The company's efficiency throughout the quarter become tremendously impacted by means of a pointy fall in metal expenses, whereas (the) advantage of lower uncooked material fees will movement via with a lag," the company stated in an announcement.

The fees of steel within the domestic market have declined by way of over 40% in comparison to the high reached in April. The expenditures had been exceptionally hit by way of a 15% export responsibility on steel levied in may additionally by the executive to rein in domestic inflation.

JSW metal's construction all the way through Q2 changed into at 5.sixty eight million tonnes, sequentially reduce with the aid of three%, attributable exceptionally to extended renovation shutdowns at considered one of its subsidiaries due to low domestic demand as well as subdued market situations in the united states of america.

The enterprise's 5 million tonne once a year (mtpa) skill expansion at Dolvi continued to ramp up and done standard capability utilisation of around eighty% compared to 60% in the previous quarter, the enterprise stated.

searching forward, the business observed that regardless of a difficult international financial state of affairs, it expects healthy metal demand increase in India all through the latter half of FY23, which together with stream via of reduce raw fabric expenditures should aid its performance in the upcoming quarters.

The inventory of

declined 1.03% to close at Rs 622 on the BSE Friday compared to a marginal boost within the benchmark Sensex. The outcomes have been declared publish market hours.
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