JSW reports net loss of ₹582 crores. First loss in six years
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.
Zeen is a next generation WordPress theme. It’s powerful, beautifully designed and comes with everything you need to engage your visitors and increase conversions.