Shares of JSW Steel slumped 3% on 25 October after the company announced its consolidated net profit for July-September stood at Rs 404 crore. 

The company reported a 85% year-on-year decline in its consolidated net profit from Rs 2,773 crore reported in the same quarter last year. The decline in net profit was due to higher imports of cheap finished steel dragged domestic prices to three-year lows.

In addition to facing pressures from imports, the significant drop in net profit for the JSW Group company can be attributed to an exceptional charge related to the relinquishment of an iron ore mine in Keonjhar, Odisha. 

The company’s statement detailed that it has accounted for a provision of Rs 342 crore linked to the surrender of the Jajang iron ore mine. This amount covers liabilities associated with inventory and site restoration responsibilities, adding to the overall financial impact seen this quarter.

The revenue from operations of the company stood at Rs 39,684 crore, marking a 11% YoY increase from Rs 44,584 crore recorded during the same quarter of the previous fiscal year. 

On the operating front, the earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter stood at Rs 5,437 crore, which is marginally lower on a sequential basis. The EBITDA margin contracted by 400 basis points to 13.7%. 

At 3:30 pm, the shares of JSW Steel closed 0.82% lower at Rs 950.20 on NSE.

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