JSW Steel, India’s second-largest private steel producer, on Friday reported a net loss of ₹582 crores in the June quarter—its first loss in over six years —with demand for steel dragged down by the coronavirus outbreak.
Sajjan Jindal-led company has reported a net loss of ₹582 and the profit reported in the year-ago quarter was ₹1,008 crore.
An outbreak of COVID-19 was reported at JSW’s primary steel plant Toranagallu Steel Works in Karnataka, affecting more than 500 workers, becoming an industrial cluster with a large number of COVID-19 cases in the state.
Earnings, Production Guidance And Debt
- Southern and western India have been impacted more by Covid-19.
- Lack of credit flows, destruction in demand and worker shortage were some of the challenges during the quarter.
- Impact of lower iron ore and natural gas prices partially offset by higher coking coal and power costs.
- June quarter results effectively includes performance for only two months.
- Net sales realisation down by 12% quarter-on-quarter to Rs 4,000 per tonne.
- Cumulative losses of overseas subsidiary stood at Rs 247 crore for the quarter.
- Covid-19 impact at Vijayanagar unit weighed on operating performance.
- Would be able to meet FY21 production guidance target of 16 million tonnes and sales of 15 million tonnes.
- 90% capacity utilisation achieved at Vijayanagar unit; worker availability is improving.
- Working closely with engineering, capital goods and automotive industry for exports.