JSW Steel: Weak Q1 still ahead of expectations

GST-led destocking and steel price correction weighed on performance, but better product mix helped

JSW Steel’s June quarter (Q1) performance may have been impacted by destocking prior to implementation of the goods and services tax (GST) and rising raw material costs, but it was still ahead of Street expectations. With this, the stock closed 0.7 per cent higher at Rs 223 on Tuesday. 

In Q1, sales volume at 3.51 million tonnes (mt) could grow just five per cent year-on-year (y-o-y) as across the industry, players resorted to destocking, especially long products, and cautious approach on inventories by customers impacted domestic volumes. The company, however, remained focused on enhancing product mix, which helped sales of value-added