InvestorQ : What is your quick take on the net losses made by JSW Steel in the September quarter?
Archita Jajjoo made post

What is your quick take on the net losses made by JSW Steel in the September quarter?

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Niti Shenoi answered.
1 month ago
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For the September 2022 quarter, JSW Steel reported 30.9% higher sales at Rs41,778 crore on a consolidated basis. Crude steel production stood at 5.66 million tonnes in the September quarter while the saleable steel stood at 5.74 million tonnes. The company was hit hard by slowing global demand and rising inflation as the war situation in Ukraine worsens. The duty imposed on exports also hit export orders for the company. Here is a gist of the company performance in financials.

JSW Steel

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 41,778

₹ 31,909

30.93%

₹ 37,500

11.41%

Operating Profit (Rs cr)

₹ 1,751

₹ 10,227

N.A.

₹ 4,241

N.A.

Net Profit (Rs cr)

₹ -848

₹ 7,170

N.A.

₹ 838

N.A.

Diluted EPS (Rs)

₹ -3.53

₹ 29.67

₹ 3.46

OPM

4.19%

32.05%

11.31%

Net Margins

-2.03%

22.47%

2.23%

Let me turn to the profit performance. For the quarter, JSW Steel dipped into a net loss of Rs848 crore due to doubling of raw material costs while inventory losses were also a huge challenge. EBITDA margins of 4.19% were sharply lower than the previous quarters on a sharp spike in raw material and inventory costs. However, despite weak exports, domestic steel demand grew at 13% yoy on auto and infra demand. These sectors have seen robust demand pull and that has helped JSW Steel domestic performance.

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