JSW Steel Apr-Jun input costs surge, volume falls 25% QoQ, consolidated PAT dives 86% YoY

22 Jul 2022

JSW Steel Ltd’s bottomline was hit by a surge in input costs in the quarter ended June even as domestic volumes showed a steady growth despite.

The company’s consolidated net profit fell sharply by 86% on the year to 8.4 bln rupees in Apr-Jun on the back of weak operating profit.

JSW Steel’s consolidated net sales rose by 32% on the year to 380.9 bln rupees on the back of a 12% standalone steel sales volume growth to 4 mln tn.

The consolidated steel sales volume of the company was 4.5 mln tn, lower by 25% as compared to the previous quarter.

The company said the sales were “impacted by sharp reduction in exports due to levy of export duty and fall in apparent consumption due to destocking at the user level.”

The company said its earnings before interest, tax, depreciation, and amortisation margin fell to 11.3% due to lower volume of sales, one-off items such as foreign currency loan translation losses and other factors.

Input costs stayed elevated for the company during the June quarter.

The cost of materials jumped 2.4 times to 256 bln rupees in Apr-June as compared to the year ago period, while power and fuel costs were up sharply by 2.2 times to 44.3 bln rupees.

The company said that the future global economic outlook has weakened “due to high inflation across most economies, with elevated energy and food prices affecting consumption.”