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JSW Steel corrects on profit booking

Capital Market 

JSW Steel declined 2.05% to Rs 147.80 on profit booking after the stock rose in the past two sessions.

Shares of JSW Steel rose 4.53% in the previous two trading sessions to settle at Rs 150.90 on Wednesday, 25 March 2020 from its close of Rs 144.35 on Monday, 23 March 2020.

Meanwhile, JSW Steel announced after trading hours yesterday, 25 March 2020, that the manufacturing operations in all the locations have been either scaled down or suspended (in certain locations). Consequently, the capacity utilisation is expected to go down significantly during this period of lockdown.

The decision to scale down/suspend production is done to support the cause of containment of the pandemic COVID-19, notwithstanding the exception to manufacturing units with continuous operation and the units producing essential commodities (steel is classified as an essential commodity under the Essential Services Maintenance Act, 1981 (ESMA)), the exchange filing added.

Further, JSW Steel stated that the overall adverse impact on the operations of the firm during the period of this lockdown, on account of the above and the expected financial impact, is not ascertainable at this stage. The company said it will continue to closely monitor the situation and take appropriate action as per the directions issued by regulatory authorities from time to time. The announcement was made after trading hours yesterday, 25 March 2020.

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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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 26 2020. 10:00 IST