JSW Steel's Profit Plunge: Market Challenges Amid Expansion Efforts

JSW Steel reported a sharp 85.43% decline in profit in Q2 of the current fiscal year, citing lower income and heightened expenses due to expansion projects. The company's total income decreased, while its net debt increased. Steel production rose, but sales and exports saw notable drops.

JSW Steel faces economic hurdles this fiscal quarter, reporting a significant profit decline of 85.43% at Rs 404 crore, driven by reduced income. In comparison, the same period last year yielded a profit of Rs 2,773 crore.

The company's total income saw a reduction to Rs 39,837 crore from last year's Rs 44,821 crore. However, expenses decreased to Rs 38,644 crore from Rs 40,801 crore. An increased net debt, now at Rs 85,098 crore as of September 30, is attributed to capital expenditure and strategic investments.

Despite these challenges, crude steel production rose by 7% to 6.77 million tonnes. However, sales dropped by 4% to 5.96 million tonnes and exports fell sharply by 43% year-on-year. The company adjusted its capex estimates to between Rs 16,000 and Rs 17,000 crore for FY25 due to project rescheduling.

(With inputs from agencies.)