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JSW Steel slides after CARE Ratings revises long-term rating

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Capital Market
Last Updated : Mar 19 2020 | 12:04 PM IST

JSW Steel fell 3.88% to Rs 157.50 after CARE Ratings revised its rating for the company's long-term instruments (bank facilities and non-convertible debentures) to CARE AA- from CARE AA.

CARE has revised its rating on JSW Steel's long-term instruments (bank facilities and non-convertible debentures) to CARE AA- from CARE AA. The outlook has been revised from negative to stable. The agency retained the rating for short-term instruments (bank facilities and commercial paper) to CARE A1+.

The revision in ratings assigned mainly takes into account slower than expected recovery in the steel prices, leading to contraction in the operating margins as reflected from the subdued financial performance of the company during 9MFY20.

Shares of JSW Steel have slumped 26.69% in four sessions from its recent closing high of Rs 214.85 on 13 March 2020.

On a consolidated basis, the company's net profit slumped 87% to Rs 211 crore on a 12.1% drop in net sales to Rs 17,416 crore in Q3 December 2019 over Q3 December 2018.

JSW Steel is a flagship company of the JSW Group, an integrated steel manufacturer in India.

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First Published: Mar 19 2020 | 11:24 AM IST

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