JSW Steel reports poor production figures in Q4

JSW Steel reported 5% drop in crude steel production to 3.97 million tonnes (MnT) in Q4 March 2020 as against 4.17 million tonnes (MnT) in Q4 March 2019.

The announcement was made before trading hours today, 7 April 2020.

Shares of JSW Steel edged higher by 5.21% to Rs 147.30 on BSE. The stock traded in the range of Rs 146 to Rs 148.70 so far.

The production of flat rolled products declined 5% to 2.87 million tonnes (MnT) in Q4 March 2020 as against 3.01 million tonnes (MnT) in Q4 March 2019. The production of long rolled products dropped 4% to 0.95 million tonnes (MnT) in Q4 March 2020 as compared with 0.99 million tonnes (MnT) in Q4 March 2019.

On a year ended basis, the production of crude steel slipped 4% to 16.06 million tonnes (MnT) in FY 2019-20 from 16.69 million tonnes (MnT) in FY 2018-19. The production of flat rolled products fell 3% to 11.35 million tonnes (MnT) in FY 2019-20 from 11.74 million tonnes (MnT) in FY 2018-19. The production of long rolled products declined 4% to 3.72 million tonnes (MnT) in FY 2019-20 as against 3.87 million tonnes (MnT) in FY 2018-19.

The steel maker also stated that the slowdown in economic activity due to unanticipated breakout of COVID-19 pandemic and followed by nation-wide lockdown in March 2020 led to a sharp fall in production across plant locations.

On a consolidated basis, its net profit slumped 87% to Rs 211 crore on a 12.1% drop in net sales to Rs 17,416 crore in Q3 December 2019 over Q3 December 2018.

JSW Steel is a flagship company of the JSW Group, an integrated steel manufacturer in India with an installed steel-making capacity of 18 million tonnes per annum (MTPA).

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