Comments
JSW Steel has reported consolidated net loss of ₹923 crore in the December quarter against net profit of ₹329 crore in the same period last year largely due to impairment charge of ₹2,122 crore on its overseas investments and lower production in India.
JSW has iron ore mining in Chile, besides a Plate and Pipe Mill and coking coal mines in the US.
The iron ore mine in Chile is shut since April last year and incurred Ebitda (earnings before interest, taxes, depreciation and amortisation) loss of $0.32 million in the December quarter, while in the US, the Ebitda loss was at $4.9 million due to dumping of steel by China.
Consolidated net sales were down at ₹8,621 crore (₹12,927 crore) on lower realisations and production.
The company had shut down three of its blast furnaces to upgrade and enhance their capacity. These furnaces, which were to be commissioned in December, will now start production in February, thus delaying the company's plan to increase overall capacity to 18 million tonne by three months.
Apart from production loss, the company also incurred a fixed cost of ₹300 crore due to shut down of three furnaces during the quarter.
Crude steel production was down 15 per cent at 2.70 million tonnes (mt), while saleable steel output was down 16 per cent at 2.55 mt.
Given the challenging business environment, the company will review its planned investment of ₹4,000 crore for the next fiscal in March. Net debt was at ₹39,480 crore and loan repayment of ₹3,900 crore is expected next fiscal.
Speaking to media, Seshagiri Rao MVS, Joint Managing Director, said saddled with excess production capacity, China is continuing to dump steel even as it incurs loss of $102 on every tonne of steel exported.
On a standalone basis, the company registered net loss of ₹4,142 crore in the December quarter against net profit of ₹415 crore in the same period last year. This provisioning on standalone books was higher at ₹5,597 crore as it also includes diminution in value of investments in subsidiaries, besides guarantees and loan extended to them.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.