JSW Steel has recorded 43 per cent fall in June quarter net profit at ₹624 crore (₹1,096 crore) on lower demand amid de-stocking by dealers ahead of GST roll-out.

Revenue was up 24 per cent at ₹15,977 crore (₹12,886 crore) on the back of higher exports. Raw material cost was up 55 per cent at ₹9,020 crore (₹5,806 crore).

The current quarter was marked by industry-wide destocking, especially for long products and sales through the trade channel. Customers adopted a cautious approach towards carrying inventories in the run-up to GST implementation, which impacted sales, said the company on Tuesday.

Sales volume increased five per cent to 3.51 million tonnes (3.34 mt) during the quarter with some accumulation of inventory.

The company focussed on enriching the product mix. Sale of value added products grew by 12 per cent, primarily due to higher volume of electrical steel, CRCA (Cold Rolled Close Annealed Coils), galvanised and colour coated products.

Exports during the quarter surged by 26 per cent as demand and pricing for steel products in the international markets remained buoyant, it added.

Subsidies fare better During the quarter, JSW Steel Coated Products registered a production volume (Galvanised/Galvalume products) of 0.44 mt and sales volume of 0.48 mt. The revenue from operations and operating Ebitda was at ₹3,060 crore and ₹205 crore, respectively. Net profit after tax was ₹117 crore for the quarter.

The US-based pipe and plate mill produced 65,491 tonnes of plates and 11,562 tonnes of pipes, reporting a capacity utilisation of 28 per cent and 8 per cent, respectively. The company sold 52,410 tonnes of plates and 11,993 tonnes of pipes during the quarter. It reported Ebitda of $5.1 million for the quarter, reflecting a turnaround in operations.

Standalone net down On a standalone basis, the company’s net profit declined 61 per cent ₹Rs 419 crore (₹1,082 crore) due to higher inventory and raw material cost. Revenue was up 25 per cent at ₹15,096 crore (₹12,021 crore).

The company’s scrip was up 0.70 per cent at ₹223 on Tuesday.

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