JSW Steel unveiled its financial results for the second quarter on Friday, and the numbers reflected strong performance, underpinned by robust domestic demand and cost-saving measures.
The company reported a consolidated net profit of Rs 2,760 crore for the quarter ending on September 30, signalling a remarkable turnaround from the previous year when they reported a loss of Rs 848 crore in the same period.
Total revenue from operations also demonstrated an uptick, rising by 6.7 per cent to reach Rs 44,584 crore. Meanwhile, total expenses saw a reduction of almost 6 per cent, with the primary driving force being a noteworthy 10 per cent decrease in key raw material costs.
JSW Steel acknowledged that the government's focus on infrastructure development and favourable consumer sentiment had spurred investments in the sector, as highlighted in their official statement.
The second quarter witnessed a surge in total steel sales, climbing by 10 per cent to reach 6.34 million tonnes. Notably, domestic sales experienced an 8 per cent increase, while exports contributed 690,000 tonnes, accounting for 11 per cent of the total sales from the company's India operations.
Market analysts credited the sustained strength in steel demand during the quarter to ongoing construction and infrastructure-related activities, even amidst a subdued monsoon. Additionally, lower costs of coking coal, a vital raw material for steel production, further bolstered the company's profit growth.
However, JSW Steel sounded a note of caution regarding the ongoing conflict in the Middle East, which has the potential to impact global economic stability.
Although JSW Steel's shares initially dipped by as much as 2.2 per cent during the session, they later rebounded to close the day with a decline of 1.13 per cent following the release of their positive financial results.
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