JSW Steel Q3 Results: Profit Misses Estimates On Elevated Power, Coking Coal Costs
JSW Steel Ltd.’s quarterly profit missed estimates by a wide margin owing to higher coal and power costs.
The steelmaker’s consolidated net profit declined 39% sequentially to Rs 4,357 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 4,872.95-crore consensus estimate of analysts tracked by Bloomberg.
Startup costs for the company's expanded capacity at Dolvi and elevated prices of coking coal and higher power cost hurting operations at overseas subsidiaries also dragged its bottom line.
Consolidated revenue rose 17% to Rs 38,071 crore, against the Rs 36,796.9-crore forecast, aided by volume growth and net sales realisation in the domestic market.
Operating profit declined 12% to Rs 9,132 crore, lower than the forecast of Rs 9,415.3 crore.
Ebitda margin contracted to 24% from 32%. Analysts had pegged the metric at 25.6%.
Other Highlights (QoQ)
JSW Steel’s sales volumes stood at 4 million tonnes as of December. This however implies 6% growth sequentially, led by a 29% rise in domestic sales, driven by demand from automotive, solar and appliance sectors. Exports moderated to 15% of sales during the quarter compared to 30% in the same period a year ago.
Shares of JSW Steel closed 2.3% lower before the results were announced compared with a 0.7% decline in the benchmark Nifty 50.