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JSW Steel slips as crude steel production declines in Q1

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JSW Steel fell 1.23% to Rs 192.10 after the company's crude steel production fell 30.2% to 2.96 million tons (MnT) in Q1 FY21 from 4.24 MnT in Q1 FY20.

The decline was primarily due to a fall in production at Vijayanagar Works after certain employees tested COVID-19 positive. The average capacity utilisation dropped to 76% in June 2020.

The production of flat rolled products was down by 29.6% to 2.05 MnT while the production of long rolled products declined 57.1% to 0.45 MnT in Q1 FY21 over Q1 FY20.

The operations are now stabilising with reduced employee strength, the steel maker said.

JSW Steel has been declared as the "preferred bidder" for four iron ore mines in Odisha, in the auctions held by the State Government in February 2020. The company has also started mining operations at all the above said blocks from 1st July 2020. It expects to meet a majority of its requirements of iron ore from these mines, reducing its dependency in sourcing the ore from merchant miners in the State of Odisha.

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).

On a consolidated basis, the steel maker reported net profit slumped 87.4% to Rs 188 crore on 19.6% decline in net sales to Rs 17,556 crore in Q4 March 2020 over Q4 March 2019.

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

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First Published: Fri, July 03 2020. 13:44 IST