JSW Steel shares fall 3% on weak Q2 earnings 

Shares of JSW Steel slipped over 3% in the afternoon session on Friday after the firm reported a 85% fall in the net profit for the quarter ended September 2024. The fall in profit was higher than  expected as higher imports of cheap finished steel pulled down domestic prices to multi-year lows amid subdued demand. The company said it reported a provision of Rs 342 crore on account of proposed surrender of Jajang iron ore mine on account of an exceptional item. 
 
Nte profit slipped to Rs 404 crore in the last quarter against Rs 2773 crore in the September 2023 quarter.
 
Revenue fell 11% to Rs 39,684 crore in Q2 against Rs 44,584 crore in Q2 of the previous fiscal. Operating EBITDA slipped to Rs 5437 crore in Q2 against Rs 7886 crore in the corresponding period. 

EBITDA margin in the last quarter came at 13.7 percent against 17.7 percent in the corresponding quarter a year ago, and 12.8 percent in the April-June quarter this year.

Consolidated crude steel production climbed 7% YoY and QoQ to 6.77 million tonne due to improved production at Dolvi and BPSL; capacity utilization of 91% at Indian operations. 

However, total sales volumes were down down 3% YoY at 6.13 million tonne but flat QoQ mainly due to lower exports. 

The stock slipped 3% intraday to Rs 927.20 post Q2 earnings. Market cap of the firm fell to Rs 2.30 lakh crore. Later, the stock closed 1.56% lower at Rs 943.15 on BSE.