JSW Steel’s net profit for the December quarter plunged 89 per cent to ₹474 crore against ₹4,516 crore logged in the same period last year, largely due to lower realisation and higher costs.

Revenue was up three per cent at ₹39,134 crore (₹38,071 crore). Overall expenses increased 20 per cent to ₹38,288 crore (₹31,986 crore). The company produced 6.24 mt of steel but sold only 5.71 mt during the quarter.

Standalone saleable steel output was up 24 per cent at 4.95 million tonnes (4 mt). The company registered operating EBITDA at ₹4,030 crore against ₹6,797 crore in the same period last year. It registered a consolidated EBITDA of ₹4,547 crore (₹9,132 crore).

JSW Steel Coated Products registered revenue of ₹6,679 crore and operating EBITDA loss of ₹11 crore. Margins were impacted by lower realisations and inventory losses. The subsidiary reported a loss after tax of ₹162 crore for the quarter.

Bhushan Power & Steel revenue and operating EBITDA was down at ₹4,998 crore (₹5,083 crore) and ₹341 crore (₹1,547 crore), respectively. BPSL reported a net loss of ₹150 crore (against profit of ₹1,018 crore) for the quarter.

Net debt as of December-end was higher by ₹3,779 crore at ₹69,498 crore due to higher working capital and forex impact.

The company expects the fundamental growth drivers to remain robust despite global weakness. The Budget is expected to continue the government’s focus on infrastructure and the rural sector. Strong tax collections should support healthy spending ahead of general elections in 2024.

Productive investments such as NIP, PLI schemes across various sectors, and indigenisation of defence equipment should continue to drive capex growth. However, the global slowdown and geopolitical risks remain key headwinds, it said.

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