JSW Steel has posted a 64.5 per cent decline in its net profit to Rs 1,299 crore for the March quarter, impacted by lower revenues, and one-time tax costs.
For the quarter under review, the Sajjan Jindal-promoted steel major has reported a consolidated net profit of Rs 1,299 crore, down from Rs 3,664 crore reported a year ago.
The net sales for the company also fell 1.5 per cent year-on-year (Y-o-Y) to Rs 45,646 crore.
JSW Steel on Friday also announced the chief financial officer’s appointment and the acquisition of a co*king coal mine in Mozambique.
The expenses for the period rose three per cent. JSW Steel has achieved a combined annual production of 26.68 million tonnes in FY24.
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The company, in its results note said that at the standalone level, the quarterly performance includes an impairment provision of Rs 1,279 crore for its US subsidiary and the reversal of Rs 1,039 crore impairment provision related to its Netherlands division.
At the consolidated level, the results also reflect a Rs 136 crore tax impact from the previous financial years.
JSW Steel missed analysts' estimates on net profit. In a Bloomberg poll, 14 analysts estimated a revenue of Rs 44,676 crore, while 11 analysts estimated a net income adjusted of Rs 1,661 crore.
Sequentially, JSW Steel’s net profit fell 46.2 per cent and the net sales grew 10.4 per cent.
At its board meeting on Friday, JSW Steel also approved fund-raising of up to Rs 7,000 crore through Non-Convertible Debentures, with warrants that are convertible into or exchangeable with equity shares by way of a Qualified Institutional Placement.
The board has recommended a final dividend of Rs 7.30 per share.
The company also announced the appointment of Swayam Saurabh as the chief financial officer (CFO Designate), who will take over from Rajeev Pai next month, as he moves to a new role within the organisation.
In its outlook for FY25, the company said the outlook for housing, auto, and renewables is robust.
“An expected rural recovery, aided by above-normal monsoons forecasted for 2024, will provide further tailwinds to economic growth. India’s overall macroeconomic profile remains strong, buoyed by healthy forex reserves and a positive outlook on capital inflows, despite escalating geopolitical risks,” the press statement added.
The steel maker also plans to spend Rs 20,000 crore as capital expenditure in FY25, up from Rs 16,752 crore spent in FY24.
