JSW Steel posts surprise quarterly loss of Rs 848 crore on price slump

JSW Steel reported a surprise consolidated quarterly net loss compared to a year-ago profit on Friday, mainly due to a sharp fall in steel prices.

Consolidated net loss came in at Rs 848 crore ($102.40 million) for the three months to Sept. 30, while total revenue from operations rose to Rs 41,778 crore from Rs 32,503 crore a year earlier.

Analysts on average had expected the Mumbai-based steelmaker to post a profit of Rs 899 crore, according to Refinitiv IBES data.

The company's performance was impacted by a sharp fall in steel prices, while benefits of lower raw material prices will flow through with a lag, JSW Steel said in a statement.

An imposition of export duty on finished steel products in May made overseas shipments unattractive, with second-quarter exports excluding semis from India down 66.4% year-on-year at 1.41 million tonnes.

Late in May, India imposed an export tax of 15% on some steel products compared with zero earlier, dealing a blow to steelmakers who were looking to increase shipments to Europe to fill a supply gap created by Russia's invasion of Ukraine.

"We expect healthy steel demand growth in India during H2 FY23, which along with flow through of lower raw material prices, should aid the company's performance in the coming quarters," the company said.