JSW Steel's fiscal first quarter net profit (attributable to owners) plunged 64 percent to Rs 867 crore despite lower raw material costs, amid lower volumes, weak prices due to strong competition from Chinese steel and subdued exports.
The company's revenue came in at Rs 42,943 crore, up from Rs 42,213 crore in the year-ago quarter, the company said in a regulatory filing on July 19.
The domestic market has seen an increased supply of the commodity, driven by a preference for cheaper import alternatives and need-based procurement. According to analytics firm Steelorbis, some mills completed maintenance shutdowns, ahead of time, during the April-May period, leading to excess supplies in the month of June. Moreover, industrial customers booked the commodity on cheaper rates, causing ample unsold supplies.
"Steel exports fell 51.1% QoQ and 35.8% YoY to 1.49mnt. India remained a net importer of steel in Q1 FY25 similar to FY24. Elevated imports particularly from China and FTA countries pose a challenge to the domestic steel industry," the company said.
On a standalone basis, net profit for the June quarter was Rs 1,205 crore, marking a 29 percent decline year-on-year (YoY). Total revenue from operations was flat YoY in the quarter, at Rs 32,654 crore, due to lower sales volumes. Consolidated crude steel production in the quarter stood at 6.35 million tonnes. The company spent consolidated capex of Rs Rs 4,466 crores.
