JSW Steel today reported a steep fall of 84 per cent in consolidated profit at Rs 116.95 crore for the September quarter, even as the Sajjan Jindal-led firm posted its highest ever quarterly saleable steel sales volume.
The leading alloy maker had clocked a net profit of Rs 748.76 crore in the year-ago period, it said in a BSE filing.
Total consolidated income of the firm fell by 22 per cent to Rs 10,906.90 crore in July-September quarter this fiscal from Rs 13,894.79 crore during the same quarter last year.
Its total expenses, however, were lower at Rs 9,839.85 crore from Rs 11,933.31 crore during the quarter under review.
During the second quarter, the firm reported a marginal fall in its crude steel production at 3.25 million tonnes (MT) compared with 3.30 MT a year-ago, while saleable steel sales volume rose by 4 per cent to 3.19 MT as against 3.07 MT during the same period.
The firm indicated that its performance is also impacted by increased imports from steel surplus countries.
"The dumping of steel into India has resulted in excess availability which continues to dent market sentiments and remains a serious threat to the domestic steel industry," it pointed out.
However on a quarter-on-quarter basis, JSW's performance was better. In the April-June quarter the company had posted a consolidated net loss of Rs 107 crore and a total income of Rs 11,576.19 crore.
"Despite intensifying competition due to dumping of steel by steel surplus countries, consolidated domestic sales volume grew robust 22 per cent YoY. Consolidated domestic sales volume stood at 2.82 MT as retail sales grew 80 per cent YoY with widening retail penetration," JSW Steel said.
On outlook, the firm said in India, overall activity levels are showing an uptick, monetary easing by the Reserve Bank is supportive of growth and recent data print of Industrial Production is also encouraging.
"Public spending on a few infrastructure segments seems to be picking up; however, the momentum needs to be sustained in the coming quarters. Increase in public spending and progress of policy reforms are key to kick-start the investment cycle," it added.
JSW Steel said it has made a provision of Rs 116 crore during the quarter towards carrying value of its investment, mainly in the US Plate and Pipe mill.
