JSW Steel Q1 profit more than halves on lower sales

JSW Steel's net profit declined by more than half in the first quarter of the financial year hit by lower sales volume on account of softer public spending on infrastructure as well as weak demand from the automotive and consumer durables sectors. Consolidated net profit declined by 57% at Rs 1,008 crore as the company had to suffer losses on account of inventory pileup as sales fell in a quarter that was also marked by subdued steel prices. Last quarter too, the company had suffered a net profit decline of 48% due to high raw material costs. There was an increase in inventory by 300,000 tonnes during the quarter that led to widening of losses due to inventory pileup by 127% at Rs 1,053 crore. The inventory includes both finished goods as well as goods that are work-in-progress. Consolidated Ebitda fell by 27% at Rs 3,716 crore as sales volume declined by 3% at 3.66 million.