Cost spike weighs on JSW Steel as profits slump 86% in first quarter

Firm scales down capex plans

The country’s largest steel producer JSW Steel reported a consolidated net profit after tax of Rs 839 crore in the first quarter of the fiscal year(Q1), falling 85.7 per cent from Rs 5,900 crore a year ago. The company saw its profit decline on the back of surge in raw material cost and lower sales due to export duty. JSW Steel reported a net profit of Rs 3,343 crore in the last quarter of the previous fiscal (Q4FY22).

The company’s cost of materials jumped from Rs 10,831 crore to Rs 25,597 crore in the quarter as higher cost of coking coal