JSW Steel stock falls 2% as profit plunges 65% in Q4

JSW Steel shares drop: Steel giant JSW Steel shares fell as much as 1.64 per cent to hit an intraday low of Rs 892.35 per share, on Saturday. 

The decline in stock value came in the wake of JSW Steel's announcement of its Q4FY24. JSW Steel’s consolidated net profit dropped 64.5 per cent to Rs 1,299 crore, from Rs 3,664 crore in the previous year. Sequentially, the profit fell 46 per cent, from Rs 2,415 crore.

Meanwhile, its consolidated revenue from operations fell 1.5 per cent year-on-year (Y-o-Y) to Rs 45,646 crore, from Rs 46,346 crore in Q4FY23. However, sequentially, revenue surged 10.4 per cent from Rs 41,337 crore in Q3.

JSW Steel’s expenses rose to Rs 44,401 crore, marking a 3 per cent increase year-on-year from Rs 43,170 crore. Sequentially, expenses surged 14.4 per cent, from Rs 38,815 crore.

The company’s earnings before interest, tax, depreciation, and amortisation (Ebitda) stood at Rs 6,124 crore, reflecting an Ebitda margin of 13.2 per cent, with a 15 per cent quarter-on-quarter reduction in operating profit.

JSW Steel attributed the decline in operating profit to lower sales realisations and higher coking coal costs. 

During Q4FY24, JSW Steel invested Rs 3,503 crore, contributing to a total investment of Rs 16,752 crore in FY24. 

The company exceeded its annual production guidance, producing 26.68 million tonnes against the targeted 26.34 million tonnes, achieving 101 per cent of the target.

The board of directors recommended a final dividend of Rs 7.30 per fully paid-up equity share of Rs 1 each for the fiscal year ended on March 31, 2024.

JSW Steel's market capitalisation stood at Rs 2,18,379.04 crore, according to the Bombay Stock Exchange (BSE). The stock's 52-week high is Rs 914.85, while its low is Rs 681.30. 

At 11:50 AM, JSW Steel shares were trading 1.60 per cent lower at Rs 892.80 per share, while the S&P BSE Sensex was trading marginally at 73,991.21 levels.